West Midlands Fire Service were called to the fire in Brickyard Road, in Aldridge, at around 5.15pm on Tuesday afternoon.
The cause of the fire is not yet known and no one is believed to be injured.
Crews were damping down at the scene after 7pm. They had used breathing apparatus, hose reel jets and a main jet to tackle the fire.
People were advised to avoid the area while the firefighters dealt with the incident.
Fire crews from @AldridgeFire @bloxwichfire and @WalsallFire are currently dealing with a JCB Digger on fire on Brickyyard Road, Aldridge, Walsall.— West Midlands Fire Service (@WestMidsFire) July 28, 2020
4 Breathing Apparatus, 2 Hose Reel Jets and 1 Main jet are in use.
Please avoid the area where possible.
A spokesman from West Midlands Fire Service said: "We were called to a JCB digger fire in Brickyard Road, in Aldridge, Walsall, at around 5.14pm on Tuesday.
"We have four appliances in attendance, from Walsall, Bloxwich and Aldridge fire stations.
"No one was injured in the fire and the cause of the fire is not yet known.
"Crews were damping down at the scene at around 7pm."