The lines appeared to be holding, despite strong wind Sunday, officials said. The Peppin Fire was 35 percent contained Monday.
The fire, which was reported May 15 in rugged terrain in the Lincoln National Forest in south-central New Mexico, has burned 12 cabins and several outbuildings.
Firefighters were coping with dry, warmer weather Monday. Wind should be lighter than Sunday, officials said.
There were 672 people assigned to the fire, along with five helicopters, two single-engine air tankers, 26 engines, 19 water tenders and three bulldozers.
Firefighters began burning out dry fuel Sunday on the eastern flank of the fire, and were continuing the operation Monday morning on the southeastern flank.
The burnout is intended to remove fuels that could cause a future fire.
The cost of fighting the fire stood at almost $2.8 million, officials said.