The incident took place when terrorists lobbed a grenade at the police station in Pulwama, which exploded outside the station on the roadside.
The blast caused injuries to several passer-by, agencies reported citing officials. Three people have been critically injured, reports said.
As per sources, the number of injured at the time of filing the story was eight.
The security forces have cordoned off the area to look for the attackers and the injured were rushed to a nearby hospital, the officials added
"Three critically injured civilians have been shifted to hospital in Srinagar for specialised treatment. The area has been surrounded for searches," a police source was quoted as saying by news agency IANS.
Just a day before an IED blast targeted an Army convoy in Pulwama. Two soldiers died while seven were injured in the attack. Two civilians were also injured. The multi-vehicle patrol of the 44 Rashtriya Rifles was moving on Arihal-Pulwama road when the IED was detonated by the militants, injuring the personnel travelling in a bullet-and-mine-proof Casper vehicle.