What is a Dakota Fire Hole? Honestly it is an hole in the ground which you make a fire in. The fire will last longer, use less fuel (fire wood) and burn warmer. The key to a Dakota fire hole is the 'chimney' there is a second whole right next to it with a tunnel connecting the two holes. The 'chimney' will be slightly smaller and not so deep so that the smoke can filter out. Seeing as I am not an expert at explaining these kind of things properly I found a video which gives a step to step guide to make your own Dakota Fire Hole.