Wildfires raise concerns over the risk of accelerated erosion as a result of increased overland flow and decreased protection of the soil by litter and ground vegetation cover. We investigated these issues following the 1994 fires that burnt large areas of native Eucalyptus forest surrounding Sydney, Australia. A review of previous studies identifies the fire and rainfall conditions that are likely to lead to increased runoff and accelerated erosion. We then compare runoff and erosion between burnt and unburnt sites for 10 months after the 1994 fires.At the scale of hillslope plots, the 1994 fire increased runoff by enhancing soil hydrophobicity, and greatly increased sediment transport, mainly through the reduced ground cover, which lowered substantially the threshold for initial sediment movement. However, both runoff ahd sediment transport were very localized, resulting in little runoff or sediment yield after the fire at the hillslope catchment scale. We identify that after moderately intense fires, rainfall events of greater than one year recurrence interval are required to generate substantial runoff and sediment yield. Such events did not occur during the monitoring period. Past work shows that mild burns have little effect on erosion, and it is only after the most extreme fires that erosion is produced from small, frequent storms. © 1998 John Wiley & Sons, Ltd.