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The bomb was placed on a motorcycle and exploded just outside the popular Hindu shrine Erawan at a major intersection in central Bangkok, the police said.
"All I can say now is there has been an explosion in central Bangkok involving a motorcycle bomb," deputy national police chief Aek Angsananond told Reuters.
He said there had been fatalities, but could not confirm details. A policeman at the scene and a rescue worker said 16 people had been killed.
There are no reports of any Indians being hurt in the blast.
Witnesses said they saw body parts scattered across the street after the bomb went off.
Reports said there is a crater at the site of the explosion. There was no immediate claim of responsibility.
Police and ambulances rushed to the scene after the explosion at around 7 pm local time. The street has now been cordoned off and barricaded.
The Erawan, in downtown Chidlom district of the Thai capital, is visited by thousands of devotees every day and is also a popular tourist site.
The shrine is located on a main road through Bangkok's commercial hub and is surrounded by three major shopping malls.
There are also several top hotels and offices in the area. The Grand Hyatt hotel is very close to the shrine.
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