Reports suggest that mobile phones may have been thrown onto the fire and exploded during the celebrations for the Lag BaOmer festival.
The incident occurred as hundreds of people gathered to celebrate the Jewish holiday in Stamford Hill.
Video posted to the internet showed dozens of people standing around the bonfire which was reportedly soaked in oil.
Ten people are believed to have been hospitalized.
The explosion occurred in Stamford Hill late on Wednesday evening.More news: Reports Indicate Potential Date For Nate Diaz Return To The Octagon
In dramatic footage from the scene, crowds can be seen running from the scene as the explosion rips through the air.
Approximately 10 people were taken to the hospital, many with burns on their faces.
Bonfires are the biggest symbol of the Lag BaOmer festival celebration around the world, which commemorates Rabbi Shimon bar Yochai.
The incident happened at Stamford Hill in north London.