The firestorm erupted at around 8.30 on Saturday evening, as revellers gathered for a performance at water park Formosa Fun Coast.
A terrifying video of the moment the powder ignited shows fire taking over the crowd, followed by screaming people running through the flames moments later.
Witness Huang Guan Zhang, 19, said: ‘The fire came too fast and nobody was able to run.’
‘Everybody was burned…Nobody could save others and people suffered severe burns.’
People were pictured using inflatable boats and lilos as makeshift stretchers for the worst injured, whilst others could be seen jumping into pools nearby to ease the pain of their burns.
Miraculously, no fatalities have been reported, but over 200 people were seriously injured in the incident, with up to 300 more suffering more minor burns.
The theme park released a statement following the incident, that read: ‘We are very regretful (for) this accident that caused injuries to many victims.’
‘The most urgent matter currently for us is to handle and addict with victims on the scene and work comprehensively with the New Taipei Fire Department.’
Taiwan has banned using coloured powder in any events until it can be deemed safe to use.