But many locals remain on high alert amid concerns the fire will flare again in southwest Queensland on Thursday.
Community spirit is high in Balonne Shire after locals banded together to help fire crews and accommodate evacuees.
Hundreds were forced to leave their homes after two fire fronts quickly converged on the 600-strong town of Dirranbandi, a seven hour drive from Brisbane, on Tuesday night.
Fire crews are prepared for a flare up of the Dirranbandi bushfire as heatwave conditions continue. (HANDOUT/QUEENSLAND FIRE AND EMERGENCY SERVICES)
"It was alarming to me how quickly it escalated from a small grass fire to something really major - it was within an hour and a half," Balonne Shire Mayor Samantha O'Toole told AAP.
"This is not a familiar situation for our community, normally we don't experience bushfires to this extent."
Some slept in their cars before finding somewhere to stay on Wednesday, others sought accommodation with family or friends.
Patients at Dirranbandi Multipurpose Health Service were relocated to St George hospital, with fire cutting power to about 400 houses, businesses and essential services.
"We had found enough accommodation for people, some billeted people around the town which was lovely," Ms O'Toole said.
"Family and friends jumped in to support so we had them all safely bedded down within the community yesterday."
By 6pm on Wednesday Dirranbandi residents were told they could "return with caution".
An emergency declaration was revoked after locals combined with more than 20 fire crews, including water bombers, to combat the blaze which burnt about 1700 hectares.
Locals used their own machinery, working alongside firefighters to finally get the blaze behind containment lines.
Power and internet has also been restored.
But locals are still wary with the fire at risk of flaring again with a wind change and more hot weather forecast on Thursday.
The Bureau of Meteorology said extreme heatwave conditions would shift toward central and northern Queensland from Thursday after Dirranbandi hit 42 degrees this week.
Temperatures are set to hit up to 44 degrees in the northwest around Richmond, Longreach and Winton.
"Today we are looking at more challenging conditions, with the wind moving to a northwesterly - the fire could change rapidly today," Ms O'Toole said.
"If the fire takes a run it should be to the east heading away from Dirranbandi so we have notified property owners in that district to be on alert today.
"We still have fire crews in the district prepared for anything that may flare up."
Ms O'Toole asked locals to remain vigilant and monitor alerts.
"But we have done an incredible amount of work with the community and rural fire service over the last couple of days so hopefully we can handle whatever comes at us today," she said.
26°C