Forests fires though considered a natural disaster by many it is a result of combined natural and anthropogenic causes. Loss of habitat due to forest fire is the greatest threat to biodiversity. Frequent forest fires in the forests around the globe have been blamed for forest deterioration. It is true thatfrequent fires on large scales cause air pollution, affect quality of stream water, threaten biodiversity and spoil the aesthetics of an area, but fire plays an important role in forest ecosystem dynamics. In this paper effects of fire on various forest elements, biodiversity and its threat to flora and fauna of a forest area is analyzed and reviewed with the help of existing publications and research papers.