Heat alerts were issued in Italy, France, Spain, Portugal and the Balkans, with temperatures expected to soar above 40C. One child died of heatstroke in Italy on Monday.
A man who suffered serious burns died in hospital as winds of up to 70 kilometres (43 miles) per hour whipped flames through Tres Cantos, a wealthy suburb north of the Spanish capital of Madrid, officials said.
He was the first fatality from dozens of wildfires that have hit Spain since a heatwave began last week.
Spanish Prime Minister Pedro Sanchez said on X that rescue services "are working tirelessly to extinguish the fires" amd warned: "We are at extreme risk of forest fires. Please be very cautious."
Hundreds of residents of Tres Cantos left their homes due to the risk from the blaze, which was contained on Tuesday morning.
"In barely 40 minutes, the fire advanced six kilometres," Carlos Novillo, Madrid's regional environment chief, told reporters.
Elsewhere, about 2,000 people were evacuated from hotels and homes near the popular beaches of Tarifa in the southern region of Andalusia.
- Saved at 'last second' -
The wildfire broke out near where a similar blaze forced evacuations earlier this month.
"We managed to save the residential area at the very last second," said Antonio Sanz, the Andalusia region's interior minister.
A Civil Guard police officer was injured after being struck by a car while helping with the evacuation, he added.
In the northwestern region of Castile and Leon, more than 30 blazes were reported, including one threatening Las M�dulas, a UNESCO World Heritage site known for its ancient Roman gold mines.
Meteorologists predicted that Tuesday will be the hottest day yet of the heatwave, with all regions under weather alerts. Forecasters said temperatures would hit around 40C and overnight lows would remain above 25C.
In neighbouring Portugal, firefighters battled three large wildfires, with the most serious near Trancoso in the centre of the country.
More than 700 firefighters and four aircraft were deployed.
Authorities warned that temperatures in southern Portugal could reach 44C.
Morocco sent two Canadair planes to assist after two of Portugal's own water-dropping aircraft broke down.
Climate experts say global warming is driving longer, more intense and more frequent heatwaves around the world.
- Agriculture hit -
Temperature records were broken at at least four weather stations in southern France on Monday and three-quarters of the country was under heat alerts Tuesday, with temperatures forecast to top 36C in the Paris region and 40 degrees Celsius in the Rh�ne Valley.
In the Rhone department, authorities suspended outdoor construction work from midday until 10 p.m. and banned outdoor public events.
French Health Minister Catherine Vautrin said hospitals were braced for fallout from the country's second heatwave in just a few weeks.
Temperatures started rising on Friday and could remain high into next week, according to the national weather office M�t�o-France.
That would make it a 12- to 14-day stretch of extreme heat.
Eleven Italian cities, including Rome, Milan and Florence, were placed on red alert Tuesday due to the heat.
The scorching temperatures and drought have hit agriculture hard.
Italy's main farm lobby, Coldiretti association, said vegetable production in the southeastern Apulia region has dropped by 30 percent.
Meanwhile, officials said a wildfire near Mount Vesuvius has been brought under control after burning nearly 600 hectares over four days.
In England, a water shortfall was classed as "nationally significant" after experiencing its driest first six months of the year since 1976, the Environment Agency said.
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