Revellers were filmed fleeing with their drinks after a fireball erupted in a pub beer garden.
Footage shows drinkers running in panic from the Spy Bar when the blaze happened in Osborne Road, Jesmond, Newcastle upon Tyne.
A huge crowd gathered in the road to witness the astonishing site with the huge flames erupting in seconds and people emptied out of other bars to watch.
Customers were enjoying the afternoon sunshine when a canopy above one of the tables was suddenly engulfed in flames.
The fireball can be seen soaring some 14ft into the air as high as the second storey of the building behind.
Crowds of people are filmed running from the premises and those nearby - some of them screaming in horror as the blaze takes hold.
A pall of smoke hung over the spy bar after the incident, believed to have taken place on Sunday afternoon.
Women with babies in prams were also in the area as as the frightened crowds looked on.
Footage was widely shared on social media with comments mainly saying how lucky it was nobody was hurt.
The suspected cause was a malfunctioning heat lamp according to some who were there.
One person claimed that the fire was caused by the heater being put on while the umbrella was not extended.
"Patio heater button pressed while umbrella down, instant fire," he said, while another added: "Why have the parasol anywhere near the gas heaters in first place, surely a safety issue."
Another wrote on Facebook: "Lucky no one was hurt," and a further joked: "Certainly keep you warm this afternoon. Hope everyone is ok."
A spokesperson for Tyne and Wear Fire and Rescue Service told The Sun: "We can confirm we received a report of a parasol on fire at a premises on Osborne Road in Jesmond on Saturday afternoon around 3:45pm.
"One appliance from Newcastle Central Community Fire Station was on the scene in just six minutes but the fire had already been subdued. We ensured the area was safe and left the scene.
"Nobody was injured and we will work with the local authority, and the business concerned, to understand the circumstances around the fire."
The Mirror has contacted Tyne and Wear Fire and Rescue Service for comment.