Grandmother Morag Ritchie, 50, awoke suddenly at 2am on Saturday to see strange lights circling in the distance a few hundred yards from her rural property near Fraserburgh.
In the video, taken by her daughter's fiancee, Scott Bower, a row of flickering lights can be seen hovering in the sky, before one of the lights moves off to the right and disappears.
Ritchie, who woke up her family to witness the event, said: "I saw lights in the sky and thought it was a strange looking star. When I looked closer, I realised they were moving in a spinning motion and then occasionally something shot off to the side. I kept going back to my bed but I was so unsettled that I continued waking up.
"When Scott looked at it, he was shocked; he didn’t think it was real. Even my husband, who is very sceptical, was convinced there was something strange going on."
The group ventured outside to film the paranormal object that was seen occupying the same spot for almost five hours.
Ritchie, who is known for her role lobbying the government over fishing quotas as a Cod Crusader, added: "It’s like nothing I have ever seen before. I have seen Chinese lanterns and aircrafts at night and this was nothing like that.
"I was quite apprehensive going to bed, I just kept wondering if it could see me. I wasn’t happy to be outside; I didn’t want to walk about my garden alone."
When Ritchie woke at 7am, the spectacle had vanished but she remains disturbed by the unexplained object that awoke her that night.
Ritchie's daughter Cara, 27, said: "It was really scary, I’m actually still scared just in case something happens; like the alien invasion in Mars Attacks.
"It didn’t seem to be too far away from our house. A light flashed then flashed again and spun around. It was really freaky. Even my fiancee was really freaked out, he kept the door half shut when he went for a cigarette."
Scottish UFO expert Malcolm Robinson, famous for his UFO Case Files of Scotland book, was left puzzled after reviewing the footage.
The paranormal investigator said: "There does appear to be lights flashing in sequence and my initial thoughts possibly were Chinese lanterns but I definitely don’t think that now, its not consistent with that at all.
"It’s very bizarre, the characteristics and the length of time that it remained in the air is quite unusual. The second option is military flares but they descend to the ground so that rules that out."
According to Robinson, 95% of all UFO reports can be reasonably explained.
He added: "There are strange things in the sky which do not conform to conventional aircrafts. People have seen lights and disc-shaped objects, it's quite exciting.
"This footage is very interesting but we would advise a full investigation before drawing any conclusions."
Civil Aviation Authority spokesman Richard Taylor, who has not seen the video, said: "We have no way of knowing what aircrafts were around that area at that time.
"There was a lot of activity with the northern lights, the natural phenomenon, wouldn’t that be a more feasible explanation than an aircraft or UFO? If it was an aircraft it would have been military."
The MoD and RAF were unable to comment on the sighting.