Dozens of firefighters spent the night at the site in Kilnhurst, Rotherham after fire broke out yesterday afternoon sending huge black plumes of smoke into the sky which could be seen across the region.
At its height, eight fire engines, several specialist vehicles and around 60 firefighters tackled the flames at the site which is occupied by two firms - Universal Recycling and Moulding Solutions Ltd.
Residents were advised to stay in their homes and keep doors and windows for more than 20 hours but the order has now been lifted.
Thousands of tonnes of plastic went up in flames after the fire broke out at about 4.30pm on Sunday.
No-one is believed to have been injured in the blaze at the site.