Witnesses say the large vehicle - which is thought to be stolen - drove into people in the shopping district of Drottninggata in the Swedish capital.
Footage from the scene shows terrified shoppers fleeing in terror. Unconfirmed reports say three armed men jumped out of the truck with two shot dead by police.
The incident comes after trucks were used in terror attacks in Nice and Berlin last year.
Horrific images from the scene show pools of blood in the street.
Swedish police have issued a warning to avoid the city centre.
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