Backed by Arab Syrian rebel factions and air strikes by the US-led coalition, Kurdish militia were closing in on Tal Abyad, a town used by the Islamic State group as a gateway from Turkey into its bastion province of Raqa.
Kurdish sources say the goal is to cut off a crucial supply line for the jihadists, who have been accused of bringing in foreign fighters and supplies across the Turkish border.
Many from the area's mixed population of Arabs and Kurds were fleeing in anticipation of a major battle, and thousands were gathered behind barbed wire fences around the Turkish border crossing of Akcakale, an AFP photographer reported.
The Syrians -- who had spent the night at the fence sleeping in the open -- could be heard asking in Arabic for help. Many held up empty bottles, pleading for water in scorching early summer temperatures.
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The black flag of IS could still be seen flying over Tal Abyad. Late on Saturday, several figures -- apparently IS fighters -- dressed in battle clothing and carrying rifles had came up to the fence on the Syrian side of the border, as Turkish soldiers eyed them nervously.
Fears have been building in the area for days, as the Kurdish People's Protection Units (YPG) militia and its allies advanced from east and west on the town of about 15,000.
By late Saturday, YPG forces had advanced to within five kilometres (three miles) of Tal Abyad, according to the Syrian Observatory for Human Rights.
The Britain-based Observatory, which relies on a wide network of activists, medics and fighters throughout Syria, said the YPG had seized at least 20 villages southwest of the border town.
A Kurdish activist who visits the front line daily said residents were seeking refuge wherever they could.
"Tal Abyad is almost completely surrounded," Arin Shekhmos told AFP.