A man is in custody and four people have been injured after a blast at the Port Authority terminal near Times Square.
A man had a pipe bomb strapped to his body when it detonated prematurely at the start of morning rush hour at 07:30 (12:30 GMT), as the terminal was filling with people on their way to work.
The suspect, identified by police as 27-year old Ullah Akayed, is in police custody. He has been transported to Bellevue Hospital to receive treatment for injuries to his hands and abdomen sustained in the explosion.
A photograph circulating online appears to show the suspect lying on the ground after the explosion with his clothes shredded and lacerations on his upper body.
The New York Fire Department said a total of four people sustained injuries at the explosion, with all injuries believed to be “non-life-threatening”.
Police Commissioner James O’Neill called the explosion a “terror-related incident” and law enforcement officials say the suspect had been “inspired” by the Islamic State, but it remains unclear whether he had any direct contact with the group.
Police said “there are no known additional incidents or activities”, but added that people should expect additional police presence on the streets as a precaution.
Anyone with information on the incident has been asked to call the New York Terror Hotline on 888-NYC-SAFE.
The terminal is the largest in the US, serving more than 65 million people every year, and is connected to the Times Square-42nd Street subway station.
White House press secretary Sarah Sanders said President Donald Trump had been briefed on the incident.