"Terrorists launched two mortar rounds on Tarek Ben Ziyad Street, in the Al-Hariqa market of Damascus, which killed one person, wounded 30 others," SANA reported, citing a police source.
Situated within the walls of the Old City, the souk is one of the oldest and most famous marketplaces in the capital popular among tourists and locals alike.
Syria's civil war began to encroach on the capital in the summer of 2012, the year after it broke out.
In a report published last week, Human Rights Watch criticized armed opposition groups in Syria for conducting indiscriminate attacks on civilian areas, which are considered war crimes.
The New York-based group documented dozens of opposition attacks on regime-controlled areas, including shelling of Damascus neighborhoods that cost civilian lives.
Rebel groups typically fire on Damascus from their bases on the outskirts of the city.