Footage broadcast on Japanese television showed thick black smoke interspersed with falling rocks rolling down the snow-covered side of the volcano towards a ski slope.
"One of the six members of the Self Defence Forces (injured in the incident) has died after being caught up in an avalanche," a defence ministry spokesman told AFP.
The ministry had earlier said that six infantry personnel who had been on a training mission on Mt. Kusatsu Shirane, northwest of Tokyo, were hit by the avalanche but had been rescued.
"Black smoke rose from the top of the mountain and we were told to evacuate inside 30 minutes later," a man who was at the ski resort told public broadcaster NHK.
"About 100 people have been evacuated," he said.
A local town official said that a total of 78 people, some of them suffering injuries, were stranded at a gondola station at the top of the mountain.
The gondola has been stopped because of a power outage.
"We're now discussing how we can evacuate them," the official said.
A woman who was stranded at the ropeway station but later rescued told Japanese TV: "There was an eruption in front of my eyes. Black and white plumes came towards me. Then the ski slope went completely black."
A snowboarder told NHK his gondola had stopped suddenly and he saw that other gondolas around him had broken windows and were covered in ash.
"I realised it was an eruption. Forty to 50 minutes later, all the gondolas moved up to the station on the top of the mountain," he said.
Japan's Meteorological Agency urged people to stay away after it detected what it said was "slight volcanic activity.
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