On Friday, 300 people in the nearby village of Panimache were evacuated as a precaution as the volcano erupted. The community is located near the foot of the 3,763-meter (12,345-foot) volcano.
Ten schools in the southern Escuintla district had suspended classes due to the falling ash.
But on Saturday, the volcano was "in conditions within normal parameters," David de Leon of the National Disaster Reduction Coordinator body told reporters.
He said dozens of people had returned to their homes, and no property damage had been reported.
A September 2012 eruption of the Volcano of Fire saw a bigger evacuation ordered, of 10,000 people.
In February 2015 another eruption forced the closure of the capital's main airport.
Apart from the Volcano of Fire there are two other active volcanos in Guatemala. One of them, Pacaya, is just 20 kilometers from Guatemala City.
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