The plane was taking off from Yellowknife bound for Hay River, N.W.T., when passengers reported the plane's right engine caught fire shortly after it was in the air, said CBC reporter Richard Gleeson.
"One lady said she smelled something even before the take-off," he said.
The plane circled back to return to the Yellowknife airport, clipped some trees and just missed some power lines before it made a hard landing on its belly, passengers said.
Gleeson said there were 16 to 18 passengers on the plane, adding that transport officials said there were no injuries.
Passengers have been told their bags will remain on the plane overnight as part of an investigation by the Transportation Safety Board.
TSB investigators expected to arrive Tuesday.
The airline says it will bring in another plane for passengers who want to continue on to Hay River.