A Territory woman has told how a brightly lit object chased the car she was travelling in.

And residents in the Territory town they were travelling to are mystified by a strange light that has been appearing in the night sky.

Cheryl Keighran, 40, said she was followed by the bright light for about 25 km when driving to her home in Borroloola last month.

Ms Keighran said she was about 25 km from the town when she noticed the light in her rear-view mirror, about 10pm, last Thursday.

"It was like a star following from behind - like a big bright light," she said.

Ms Keighran, who was travelling with her aunt Marjorie, 55, and daughter Jenaya, 3, from Darwin, said they pulled over to the side of the road and noticed the light still coming towards them.

"I s--- myself and jumped in the car," she said.

"When I looked in the mirror it had spun around to the side of the car and was actually chasing us."

Ms Keighran said the light turned into a bright orange ball and followed their car all the way to Borroloola before disappearing into the distance.

"It followed us all the way to the outskirts of town. I was trying to ring my mum, saying 'We are going to get abducted tonight'," she said.

Ms Keighran said people had been seeing strange lights in the sky around Borroloola for years.

"The Aboriginal people around here say it could be a spirit," she said.

"I don't know. It's just really weird because it hangs out on one stretch of road.

"It could be a spirit or it could be a UFO ... we don't know."