Roadway tunnels often include a reinforced concrete drop ceiling that is hung from the liner to create a plenum that facilitates ventilation and houses utilities. Drop ceiling panels are lightweight compared with the much thicker tunnel liner and can experience significant damage from a fire on the roadway below. This paper examines the flexural response of drop ceiling panels in two representative tunnels to standard fire curves as well as several realistic fires due to vehicular accidents. Standard fire demands as per the Rijkswaterstaat and ASTM E1529 fire curves are uniformly applied to the ceiling panels, and heat exposure contours for typical vehicle fires with heat release rates of 30, 100, and 200 MW are generated from the software CFAST. The finite element analysis software SAFIR is used to evaluate the thermo-mechanical behavior of the ceiling panels when subjected to various thermal demands from the fire below. The analysis results indicate that drop ceiling panels are highly vulnerable to fire-induced damage and potential collapse both during a fire’s active heating phase (from simultaneous loss of capacity and restraint of thermal expansion) and during the subsequent cooling period (from tension that develops when the permanently deformed panel thermally retracts). The potential for fire-induced damage or collapse of the drop ceiling panels can be mitigated by reducing the fire hazard, removing the drop ceiling, or enhancing the fire resistance of the panels via the application of passive protection or structural hardening.