The traditional nighttime celebration takes place in San Bartolome de Pinares every Jan. 16, the eve of Saint Anthony's Day, Spain's patron saint of animals.
It was cancelled last year because of pandemic restrictions.
Revellers rode their horses through the narrow cobble-stoned streets, which according to tradition, purified the animals with the smoke and flames of the bonfires for the coming year.
After an hour of horses jumping over flames, revellers then took to dancing and drinking.
"This comes from thousands of years ago. So that animals did not get unwell, the old priests would bless them with fires so that they would jump and be purified," said Fermin Abad, 64, a local resident.
About 100 horses and their owners took part in the festivities, Reuters witnesses said.
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