The attack started at about 0900 PM last night when three gunmen launched a brazen assault at the Park Palace Guesthouse, located in the Kolola Pushta area of the Kabul city.
Soon after the gunmen stormed the guest house, Afghan National Security Forces including Special Forces arrived and began striking back the attackers and also rescuing those under siege inside the guest house.
There was no clarity over the overall death toll apart from the confirmation that four Indians and an American were among the dead. At least six people were also wounded in the attack.
President Ashraf Ghani's special envoy for good governance Ahmad Zia Massoud visited the attack scene in Kabul.
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The militants attacked the guesthouse thinking the (Indian) Ambassador (Amar Sinha) was present in the compound, Massoud was quoted as saying by Khaama Press.
Massoud said the assault was likely a political attack but he did not elaborate further, according to the report.
"The attack was planned carefully to target the party in which important people and Americans were attending," the militants said in a statement.
When the attack took place, the musical event was due to begin and was to be attended by the Turkish and Indian guests as well Afghan nationals, an Afghan Security official was quoted as saying.
Kabul police chief Abdul Rahman Rahimi said security forces rescued 54 people from inside the guesthouse.
All three attackers were killed in the siege that lasted for about seven hours, ending in the wee hours of this morning.
United States Embassy in Kabul confirmed the death of one of American national in the attack.