The bus was on a regular journey along the A941 at Sunbank Quarry when it burst into flames at around 12.30pm.
Scottish Fire and Rescue teams were rushed from Elgin and Lossiemouth but passengers had been evacuated and the blaze was under control by the time they arrived at the scene.
Reports indicate that the bus had suffered an engine problem in the blaze which was reported by a passing motorist who had spotted smoke coming from the bus.
The road had been closed for around 15 minutes during the emergency, with a police spokesman saying they were informed of the incident at around 12.45: “It was just outside Lossiemouth but the fire had been extinguished before we arrived.”
A spokesman for operators Stagecoach said: “Passengers were provided with another bus to allow them to continue their journey to Elgin. We are sorry for any inconvenience caused to our passengers.”
Meanwhile a pedestrian suffered serious injuries after being hit by a car close to the McDonald’s junction on Linkwood Way in Elgin in the early hours of Sunday morning.
The 47-year-old man was struck by a white Skoda Octavia at around 3.40am.
He was later taken to Dr Gray’s Hospital. A stretch of the A96 was closed with diversions in place as investigations were undertaken on the cause of the accident.
Police have appealed for information and anyone who may have witnessed the incident is being asked to contact them on 101.