Those inside the house on Tamar Way at Muswellbrook the night it burned told police that they heard glass shatter outside moments before the fire could be seen through the front windows.
A neighbour quickly came to the aid of the residents and helped extinguish the blaze police established had been caused by a Molotov cocktail that had been thrown at the home in the small hours of Sunday, November 6.
One of the residents sustained minor burns in the effort, and police have since been hunting for the culprit.
On Monday, investigators released CCTV footage they say shows a person police are eager to speak to regarding the alleged arson attack.
It appears to show a person dressed in a hoodie approach the house from the street, light the Molotov cocktail, and hurl it toward the property before fleeing the scene.
Anyone who recognises the person in the footage has been urged to contact detectives at the Hunter Valley Police District on 02 6542 6999 or Crime Stoppers on 1800 333 000.