Police said militants lobbed a powerful hand grenade at a paramilitary Central reserve Police Force vehicle in Khanyar area of old city Monday afternoon.
"The grenade explosion killed one civilian passerby on the spot while eight other people, including four civilians and four CRPF troopers were wounded in the attack," a senior police officer told rediff.com in Srinagar.
The vehicle, which caught fire immediately after the explosion, was destroyed in the attack.
All the injured have been removed to the city's main hospital for treatment where doctors have described the conditions of two of the wounded as critical.
The entire area was cordoned off following the attack. Senior police and CRPF officers reached the spot.
