If you have three on the field, your opponent will have a hard time getting to your Life Points. Its effect is similar to "Revival Jam", but you don't have to pay Life Points to Special Summon it. Its only downside is that it cannot be offered as a Tribute for a Tribute Summon. This is best done with "Spirit Barrier" in play, because "Fox Fire" has to be face-up when destroyed for its effect to activate.
Another good combo is to use any number of "Fox Fires" with "Backfire". That way, you will deal 500 points of damage whilst being able to revive Fox Fire.
Combine this card with "Inferno Reckless Summon" when it's Special Summoned from the Graveyard to summon 3 "Fox Fire" cards and create a great defense wall. Even if your opponent gets to summon 2 other monsters, you will always have a "Fox Fire" defending you against each of them.
Use "Ojama Trio" to limit the amount of monsters your opponent can control, so your opponent won't have enough monsters to destroy all three "Fox Fires".
You can Special Summon this card in DEF position when your opponent destroys "The Thing in the Crater", so you don't have to risk this monster being summoned in ATK position.
You can also use or "Light of Intervention" to allow this card's effect to activate without risking your Life Points.
Use this card with "Creature Swap" as this will allow you to deal heavy damage, steal an opponent's monster and allow you to re-summon "Fox Fire" onto your side of the field.
Although you can't tribute it, you can still use this card for a Synchro or Xyz Summon.
Use in combination with "The Dark Door" to virtually stop your opponent's monsters from attacking. Also, "Card of Safe Return" can allow you to draw every turn that "Fox Fire" is destroyed and revived, allowing you to win with the effect of "Exodia the Forbidden One", for example.