Rubber bullets and tear gas have been used by Australian authorities to regain control of Christmas Island, after chaos reigned when the detainees at the detention centre took over.
Australian Federal Police were called in as reinforcements to quell the rioters, dozens of whom are reportedly New Zealanders.
The detainees set fire to buildings and caused communication between Australian immigration and border officials to break down.
Before the operation to retake Christmas Island, the detainees were reportedly told by officials: "You're all f*****"
A New Zealand national spoke to ONE News from inside the compound this morning, saying drones could be seen flying over the detention centre.
Tuka, who didn't want to give his surname, says armed guards were also preparing to enter the centre, and that detainees had been warned.
"They're all geared up. They're all riot geared up," he said.
Detainees have armed themselves with chainsaws and machetes preparing for a possible confrontation with the guards, Tuka said.
He says the young men held at the centre are prepared to "go to war" with the guards while the others are caught in the middle of it all.
"A lot of us want to get the hell out of here but we're stuck."
One man is believed to be negotiating with officials on the outside, but Australian immigration has remained tightlipped on details of the ongoing riots.
"They're being treated like animals"
Earlier this morning, Labour MP Kelvin Davis said he fears for the lives of Kiwi detainees involved in an ongoing riot at the detention centre.
Speaking to Breakfast this morning, Mr Davis says he has serious concerns for New Zealand nationals caught up in the riots which began yesterday following the death of an Iranian refugee.
Around 50-60 Kiwi detainees are believed to be involved in the riots which saw lawnmowers and buildings set on fire.
Mr Davis says the treatment of detainees is the reason the riot began.
"They're being treated like animals that's what's started the riots," he said.
He needs to be Prime Minister of detainees as well as All Blacks- Labour MP Kelvin Davis
He also blasted Prime Minister John Key for his "weak" response to the detention centre crisis.
"He is washing his hands of this," he said.
"He needs to be Prime Minister to detainees as well as All Blacks."