The blast took place on VVIP Road between Faizabad and Rawal Dam Chowk an hour after Musharraf's convoy passed through the route at about 3 am to shift him to his farmhouse from from Armed Forces Institute of Cardiology in Rawalpindi.
He was unhurt, but officials said the blast caused about a foot deep hole in the ground.
The police claimed that the 70-year-old former president was the target, media reports said.
The bomb was reportedly planted in a drainage pipe adjacent to the footpath.
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A case regarding has been registered against unknown persons in the Secretariat Police Station.
Since Musharraf is under threat from terror groups, heavy security has been given to him and all his routes are thoroughly checked before he gets out.
Reports said one person, who was in a car passing through the area, was injured in the blast.
Musharraf is facing five counts of high treason that potentially carry death penalty or life imprisonment.
Since his return to Pakistan from self-exile in March last year, Musharraf has faced prosecution in four major cases, including for his alleged involvement in the murder of former prime minister Benazir Bhutto in 2007 and the killing of Baloch nationalist leader Akbar Bugti in 2006.