The blast rocked Kabul's high-security diplomatic area where the Indian embassy is located but all staffers at the Indian mission were said to be safe.
Reports said the massive blast smashed windows of the buildings nearby and a huge plume of smoke could be seen spiralling over the high-security area.
Several people were killed and wounded in the blast near the fortified entrance to the German embassy, said Basir Mujahid a spokesman for Kabul police.
Official sources at the Ministry of External Affairs in New Delhi said that all staff at the Indian embassy were safe.
But some damage to the windows of the embassy building has been reported, they added.
#WATCH Visuals from the blast site in Kabul, Indian embassy staff safe. AP reports 50 people have been killed or wounded #Afghanistan pic.twitter.com/a6rC71DKea
— ANI (@ANI_news) May 31, 2017
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