Taliban claimed responsibility for the attack on a foreign guesthouse in eastern Kabul early Monday after a powerful explosion was heard almost all around the city.
Scores were feared killed and injured.
A massive explosion struck North Gate guesthouse, a secure residential compound for foreign military and civilian organizations in Kabul.
The blast occurred at about 01:25 local time, causing panic among local residents.
The Afghan Special Operation Forces arrived at the scene shortly after the incident.
Security forces have cordoned off the area for precautionary measures.
However, there was no immediate word on casualties from Afghan authorities.
Taliban spokesman told local media that a Taliban suicide squad conducted a complex attack against a foreign guest house and the attack was part of Taliban yearly rebel offensive.
He said the explosion and gunfight have claimed the lives of dozens of foreigners.