The Caldor Fire in U.S. California burned 216,358 acres (about 875.6 square km) and was 44 percent contained as of Monday morning, fire officials said.
Active for 22 days, the fire had destroyed 922 buildings, damaged 75 structures in El Dorado and Amador counties and threatened thousands more, said the California Department of Forestry and Fire Protection (CAL FIRE).
Because of the progress on Sunday, the mandatory evacuation order within the South Lake Tahoe city limits was downgraded to a warning.
The blaze forced the evacuation of the entire city of South Lake Tahoe last week.
As residents began returning home, Jaime Moore, a public information officer for the Caldor Fire, warned that it is not time to relax, especially as the weather gets hotter, drier and windier.
"They shouldn't unpack and take everything out of their cars and think all the danger is gone," he was quoted as saying in a report by the San Francisco Chronicle on Monday.