Officers from the Batley and Spen NPT said they attended the fire at Bridge Street in Birstall on Tuesday afternoon.
They said the fire, which started with garden waste, quickly spread to a nearby tree and was spotted by local builders.
They ran to investigate and one man, Richard Irvine, spotted the kennel and a scared dog tethered inside.
He rescued the animal before she was injured by the fire or smoke.
Police said: “Well done Richard, we think you have made a friend for life!”
Fire crews were called to extinguish the blaze before it caused any major damage.