The Taliban claimed responsibility for a truck bomb attack on a military and logistics services compound in Kabul early on Monday, after a powerful explosion was heard all around the city.
A security services official said four heavily armed attackers were fighting on the site of the Northgate Hotel, a secure residential compound for foreign military and civilian organizations.
There was no immediate word on casualties from Afghan authorities.
A spokeswoman for the NATO-led Resolute Support mission said they were assessing the situation but gave no details.
A statement from the Taliban claimed responsibility for the attack, which it said had caused dozens of casualties and added its fighters had entered the compound.
The attack comes around a week after Islamic State claimed responsibility for a suicide attack on a demonstration by members of the mainly Shi'ite Hazara minority, killing at least 80 people.
The Taliban, which often says it wants to avoid civilian casualties, said the compound was not near homes and that ordinary people were not harmed.