A fire near the recycling centre in West Belconnen sparked a grass fire that ripped through more than 40 hectares of land on Friday.
ACT Fire and Rescue and the ACT Rural Fire Service were called to the fire shortly after 2pm.
It began in a large pile of timber pallets near the West Belconnen Resource Management Centre on Parkwood Road before spreading into nearby grassland.
The grass fire, which was sparked by spotting from the pallet fire, burnt 41 hectares of grassland - the equivalent of 80 football fields.
An Emergency Services Agency spokesman said the grass fire was extinguished by 4.30pm, largely thanks to a water-bombing helicopter however, firefighters remained in the area to control hot spots.
The Bushfire Alert and Warning Level for the fire was downgraded from 'watch and act' to 'advice' shortly after.
The pallet fire was still burning as of 7pm but under control, with crews expected to remain on scene overnight.
At its peak, the grass fire covered a 100 metre by 50 metre area and was burning several hundred metres from properties on the edge of Macgregor.
The spokesman said the fire did not threaten any homes, with fire crews placed between the fire and nearby houses backing onto grassland along Hollows Circuit and Eccles Circuit.
Smoke from the fire was visible over parts of Belconnen, with earlier reports of thick smoke covering Latham and Kippax.
The spokesman said firefighters evacuated the Parkwood industrial estate as a precaution.
Meanwhile, a second spokesman said none of the horses at the Parkwood Horse Holding Paddocks were injured in the fire.