The tractor caught fire while carrying hay bales on the Llanfair to Cefn Coch road last night.
Crews from Llanfair and Welshpool headed to the incident at around 8pm.
A statement from Mid and West Wales Fire and Rescue Service said: "On Thursday at 08:12pm, crews from Llanfair Caereinion and Welshpool attended a tractor fire on the C2013 road, near Cefn Coch, Welshpool.
"The fire involved a tractor and a trailer carrying hay bails and was extinguished using two hose reel jets and a thermal imaging camera.
"The tractor and trailer were then moved to an adjacent field in order to clear the road. The Fire Service left the incident at 10:39pm."