Baghill Lane was closed in both directions between Midland Road and the A645.
Firefighters from Pontefract, Castleford and Featherstone station were called to PRS Skip Hire at around 2am to reports of a skip on fire.
Pontefract Crew Commander Martin Henshall said: “On arrival, it was quite obvious it was not a skip fire but it was actually recycling material in the yard.
“There was a very large fire in the open with the risk of spreading to nearby neighbouring homes and companies including Dulux and Howdens Joinery.
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“The teams got to work quickly to stop the fire spreading to these premises and they accomplished that effectively and early on.”
One engine is still present at the scene.