The curious heavenly light show was spotted by Wayne and Jo Taylor as they enjoyed a smoke outside their home in Barnsey Gardens, Ashburton.
Wayne, 40, said: "I just couldn't believe it. I've never seen anything like it in my life before."
A neighbour told him: "I'm glad you saw them too because I don't want people thinking I'm mad."
He counted about a dozen, slow-moving circular lights in formation heading towards Dartmoor at 10.20pm.
At the same time star-gazers across the country were being similarly gobsmacked by the apparitions with 200 seen at various points between the South West and Yorkshire.
A spokesman for UFO Investigations UK immediately called for a Government inquiry to explain the deluge of reports from Sussex and Bedfordshire and from Devon to Lancashire and beyond.
"The whole of Ashburton is now talking about it," said Wayne, who captured mobile phone pictures of the happening high above his home.
"I have absolutely no rational explanation for what I saw. The lights moved at one stage at a 90 degree angle.
"They were not these lanterns that people keep reporting. There was no way of telling how far or close they were. It's very difficult to explain them. They were quite random."
The spokesman for UFO Investigations UK confirmed that more than 200 people had reported sightings across the UK. Normally the organisation receives 10 to 15 sightings a day.
Record Number of Sightings
The record number of UFO sightings up and down the country on Saturday night has baffled experts.
Mysterious objects spotted included bright orange balls shooting through the sky and strange flickering lights.
Mental health nurse Chris Wood, 27, caught the eerie orange orbs on camera during a family garden party in Wakefield, West Yorkshire.
He said: "The speed they were moving was incredible. They rose through the sky and disappeared. The kids were really frightened and I was too."
Telecoms worker Danny Barton saw "massive orange balls of fire" rising out of the sea in Goring, West Sussex.
Other Sun readers sent in intriguing photos from Manchester, Leicester, Basingstoke and Arlesey, Beds.
James Hatfield, of UFO Investigations UK, called for an official MoD inquiry after his organisation received a record number of reports of sightings in one night.
He said: "More than 200 people got in touch yesterday claiming to have seen UFOs on Saturday night. Normally we receive ten to 15 reports a day.
"So far we've not been able to explain all the sightings. It's time for an official inquiry."
This is getting ridiculous... Or so I say until I see some myself - then I'll be in panic.