Pictures and video taken last night show the posters being removed and they were then burned in the Riverside Terrace area of Derry.
The PSNI and Fire Service attended the scene shortly after 1am and the fire was extinguished.
Ms McLaughlin called for an end to attacks on election posters after a number of incidents in the city and across the North.
The Foyle candidate said: “It really angers me that anyone thinks they have the right to remove my election posters and burn them in the street.
“Hard working volunteers spent hours putting up these posters and it is totally unacceptable that they have been treated in this way.
“I’d like to thank the fire service and police for attending this incident and extinguishing the fire.
“As someone who has lived in Derry all my life, raised my children here and worked in our business community for many years it’s painful to see your image burnt and young people being used in this way.
“As both a councillor and an MLA I have worked on behalf of every community in this city and I won’t be deterred by this incident or any attempt to impact on my campaign.
“This sinister development is yet another toxic incident in what is shaping up to be an extremely challenging election campaign.
“My SDLP colleagues and representatives from other parties have had their posters burned, while others have been threatened and even attacked.
“I’m calling on every politician to send a clear message that this kind of behaviour is completely unacceptable, nobody should have to put up with it.
“I’ll be dusting myself down, putting new posters up and getting back on the campaign trail today to send a clear message that I won’t stand for this kind of nonsense.”