The passenger was sleeping onboard a flight from Beijing to Melbourne when she was woken by the sound of an explosion.

She took the headphones off to find them sparking, catching fire and beginning to melt.

The explosion and fire left her with a blackened face and blisters on her hands.

The unnamed passenger told the Australian Transport Safety Bureau (ATSB) she was listening to music when the explosion occurred.

"I just grabbed my face which caused the headphones to go around my neck. I continued to feel burning so I grabbed them off and threw them on the floor. They were sparking and had small amounts of fire," she said.

Members of the flight crew rushed to help and eventually put out the fire by pouring a bucket of water on the headphones.

By that time, the battery and the plastic cover of the headphones had melted and stuck to the floor of the aircraft, BBC News reports.

"For the remainder of the flight, passengers endured the smell of melted plastic, burnt electronics and burnt hair," the ATSB said in its report.

The report did not mention the brand of headphones, but said it believed that a fault with a lithium-ion batteries was likely to be the cause.

The ATSB has published a new set of guidelines:

• Batteries should be kept in an approved stowage, unless in use

• Spare batteries must be in your carry-on baggage not checked baggage

• If a passenger’s smart phone or other device has fallen into the seat gap, locate their device before moving powered seats

• If a passenger cannot locate their device, they should refrain from moving their seat and immediately contact a cabin crew member.