A Buddhist pagoda was set alight by a falling sky lantern during a religious festival in Thailand.

Footage shows the structure engulfed by billowing flames in the middle of the Yi Peng festival in Chiang Mai province on November 8.

The pagoda was made from flammable thermocol foam to celebrate the annual festival. The material caused the fire to spread rapidly once it was ignited.

No one was reported injured, and the blaze was quickly extinguished by authorities before it could encroach on other areas further.

The Yi Peng festival is celebrated on the full moon of the 12th month of the Thai lunar calendar.

During the festivities, locals release paper lanterns into the sky, dotting it with beautiful ethereal lights. The act symbolises letting go of misfortune and bad luck while welcoming the coming year.

However, the tradition has also drawn criticism, as the floating lanterns are considered flight hazards and have previously been blamed for property damage.