Fire plays a role in the vast majority of terrestrial ecosystems. Researchers have discovered that the negative effects of prescribed fire on soil, water and vegetation are transitory, and that benefits are much greater. This paper presents a synthesis of the most important recent work on the effects of prescribed fire on soil, water and vegetation and assesses the validity of the use of fire as a management tool. The impact of fire is low and temporary, while the benefits are greater both directly (e.g. reduction in vegetative fuel and the risk of fire, non-contamination of water) and indirectly (e.g. improvement in forest health). Thus, prescribed burning is a good management tool and should be incorporated into land management and regional planning. Researchers, managers, stakeholders and landowners must be taken into account in order to increase knowledge of this management tool and implement it in the most optimal way possible.