Mix a batch of high-temperature mortar in a small bucket. Look for any cracks within reach of the fireplace or within reach of the top of the chimney. Use a trowel to push the mortar into the crack. Allow to dry for the time recommended by the manufacturer.
Look at the top of the chimney for broken parts. If the top section of the clay liner of the flue is broken, you can hit the remaining portions of the same section with a hammer and pull out the broken parts. Lower a new clay liner section into the chimney, and mortar it into place with the high-temperature mortar.
Install an insulated steel liner to act as a new flue for your fireplace. This involves cutting a liner to fit your chimney, wrapping it with insulation and then dropping it into your chimney. The process is complicated and involves at least two people, but most chimney lining kits have step-by-step directions.