Hundreds of shoppers were seen fleeing for their lives after the articulated truck rammed into the corner of the building. Dozens were believed to have been injured.
Shots were heard and the driver, who was said by witnesses to be wearing a balaclava, is thought to have been arrested. There were also reports of shots at a second incident.
The incident took place at Ahlens Mall in Klarabergsgatan.
The truck is understood to have been stolen or hijacked from a Spendrups brewery. Extinguisher was seen being sprayed on to the vehicle.
Prime Minister Stefan Löfven said everything pointed to the incident being a terror attack and confirmed one person has been arrested.
Armed police were scrambled to the scene and were seen marching into the store.
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