Flight MH148 had just taken off for Kuala Lumpa, the capital of Malaysia, but had to make a quick U-turn after an engine fire warning light activated in the cockpit.
The airline confirmed 300 people were evacuated from the plane when it touched down.
Airport officials said the Airbus A330 dumped fuel south of Melbourne as a safety precaution before landing.
"The pilot called an emergency landing and as standard procedure when a pilot calls any sort of emergency landing, emergency personnel are currently on site," they told AP.
A preliminary inspection was conducted and revealed no external physical evidence of a fire, but the Airline tweeted to stress safety was its first priority.
MH148 MEL-KUL made an air-turn back and landed uneventfully. The aircraft is being grounded for investigation. More details to follow.— Malaysia Airlines (@MAS) June 12, 2015
[MH148] Preliminary inspection on the aircraft reveals no physical evidence of fire externally. Safety is our utmost priority.— Malaysia Airlines (@MAS) June 12, 2015
The troubled state-owned airline has faced no shortage of disasters, having lost two airlines in the last year.
Flight MH370 mysteriously disappeared along with the 239 souls on board in March 2014.
Underwater searches are currently being conducted by the Australian authorities for the plane's debris, but are still clueless as to what caused the jet disappear.
Months later, in July, a Malaysia Airlines plane was shot out of the sky in Ukraine, with all 298 on board killed.