This is the shocking moment an iron caught fire as a woman made decorations for a religious festival.

Footage shows the housewife crafting floating baskets, known as Krathongs, at home to sell for the upcoming national Loy Krathong festival in Surat Thani, southern Thailand.

She can be seen flattening a yellow, ball-shaped object made from fish food snacks when the power socket her iron was plugged into suddenly short-circuited on October 22.

Smoke began rising from the cable as sparks flew from the electrical outlet, prompting the woman and her child to scream in shock.

She quickly rushed to unplug the iron from the main socket, after which the sparks and fumes dissipated.

The woman did not sustain any injuries from the incident.

She said that the fire may have been caused by an old and worn-out power outlet.

Loy Krathong is a traditional Thai festival celebrated on the full moon night of the 12th month in the Thai lunar calendar, usually in November. The festival is known for its beautiful and symbolic practice of releasing floating lanterns and krathongs - small, decorated floating vessels made from banana leaves, flowers, candles, and incense - onto rivers, canals, or other bodies of water.