Police are investigating a fatal two car crash at Termeil on Sunday evening which claimed the life of a 70-year-old Dalmeny man.

The head on collision between a Holden Commodore sedan and a Holden Commodore station wagon occurred at 8.20pm on the Princes Highway four kilometres south of the Bawley Point turn off.

The 70-year-old Dalmeny man, driving the southbound sedan, died in the collision.

The station wagon was carrying four passengers at the time of the accident with three reported to remain in a stable and one in a critical condition.

A 47-year-old Ulladulla man suffered a fractured sternum, a 49-year-old Ulladulla woman was treated for a fractured ankle and facial injuries and a 13-year-old Mollymook girl suffered abdominal injuries.

The fourth passenger, a 13-year-old Ulladulla girl suffered internal injuries in the crash.

All four were rushed to Milton Hospital where the Ulladulla girl was stabilised before being airlifted, along with the Mollymook girl who remains in a stable condition, to Westmead Children's Hospital in Sydney.

The girls were transported by the Ambulance Rescue helicopter.

The Ulladulla girl underwent emergency treatment at the hospital and is believed to be in a critical condition.

After being treated at Milton Hospital, the two adults were transported by road ambulance to HMAS Albatross in Nowra and flown to Sydney in a fixed wind air ambulance.

Both adults were in a stable condition and were believed to be with the two girls.

The Princes Highway was closed for several hours as police from the Shoalhaven and Far South Coast Local Area Commands and the Crash Investigation Unit carried out investigations into the incident.

Witnesses stopped to help those injured in the accident, with one helpful bystander offering to look after a dog travelling with the family in the station wagon.

The police were yet to release the Dalmeny man's name at the time of going to print and told the Times investigations into the accident were ongoing.

The investigation will include a report by the coroner.

MEANWHILE, a 20-year-old woman was lucky to escape uninjured from an accident on the Princes Highway at Lemon Tree Creek on Sunday.

The Ulladulla woman was travelling north on the Princes Highway approximately one kilometre south of Tabourie at 2pm on Sunday, July 20.

The woman was rounding a right hand bend when she lost control of the vehicle and veered to the left of the road.

The driver's vehicle hit the railing on the side of the road before rolling the car coming to rest near the Lemon Tree Creek Bridge.

The woman was treated at the scene by ambulance paramedics for minor injuries while police officers began investigations into the accident.

The woman's car was towed from the scene.

The police are continuing their inquiries and have not yet charged the woman in relation to the accident.