A dragon float at Disney World's Fantasy Parade burst into flames in Orlando, Florida.

"I think we have a problem, the dragon's literally on fire," says one shocked onlooker in a video circulated on social media.

The float was supposed to represent 'Maleficent' from Disney classic Sleeping Beauty.

However the display got a little too realistic when the giant model dragon not only breathed fire, but became engulfed in flames sending thick, black smoke into the air.

Onlookers, including many children, saw the motorised beast continued to lift its head up and down while the flames made their way down its neck.

A Disney employee was quick to extinguish the flames and the company told WKMG that no employees or guests were injured during the incident.