Casualties were feared Saturday evening after Taliban gunmen targeted a foreign guesthouse in western Kabul, capital of Afghanistan, sources said.
"Two hand grenade explosions were followed by gunfight in a guesthouse in street 5th of Kart-e-Say locality at around 4 p.m. An unknown number of attackers seized the building and sporadic firing is still going on there," a witness told Xinhua.
Government troops cordoned off the area shortly after the attack, keeping people from gathering at the scene.
No casualty reports were immediately available.
Shortly after the incident, the Taliban insurgent group claimed responsibility for the attack.
The attack was the latest in a string of bombings that have targeted dozens of military and civilian installations in Kabul over the past couple of weeks as the NATO-led forces are withdrawing from the country.