Gardaí and emergency services are attending the scene of a two car collision just south of Abbey Vocational School, Donegal Town.
The collision was reported to gardaí at around 5.25pm.
Two people are being taken to hospital by ambulance.
A garda spokesperson said their condition is not thought to be life-threatening.
DIversions are in place and drivers are asked to use extra care if travelling in the vicinity.
Anyone with information is asked to contact gardaí on 074 972 1021.