Phillip Sutcliff said he was "very surprised" to see the car approach him while he was teaching a learner driver to negotiate Bispham roundabout.
In shocking footage, captured by the instructor's dash cam on March 9, a white car can be seen driving dangerously the wrong way around the roundabout.
The video then cuts to the view from the back of the car where the white car is seen narrowly missing an innocent black Volkswagen that is travelling in the right direction.
The roundabout is said to have a notoriously difficult approach and can be hard to navigate particularly for inexperienced drivers.
A post that Mr Sutcliff shared to his Facebook page showing the dangerous manoeuvre has been shared nearly 1,000 times since it was posted.
Mr Sutcliff who owns Drive Right Driving School said: "I was very surprised to see the car coming the wrong way.
"The driver was elderly and had a slightly blank look. It looked like they had got lost and tried to make the best of it.
"Bispham roundabout can be confusing, but once you realise that it's one roundabout and not two it's fine. The other part is a traffic island to separate coming on and off. Most people get it, but don't like it."