Afghan President Hamid Karzai was in the palace compound when the attack began around 6:20 AM local time (0200 GMT). Karzai had a scheduled meeting with journalists.
Karzai "never appeared to be in danger," reports The Guardian. He was "behind several more walls inside the heavily fortified palace itself. One source who was inside the complex, which has outer walls several dozen metres thick in places, said the fighting never approached the inner area."
The attack was put down entirely by Afghan National Security Forces (ANSF). Earlier this month, ANSF took the lead in providing security for Afghanistan, with NATO now in a support-only role.
The Taliban claimed responsibility for the attack, and said their targets included the Ariana Hotel, which is home to the CIA station in Kabul.
Afghan security officials said they believe the attack was actually executed by the Taliban-linked Haqqani Network, reports Reuters. "The Haqqani Network is accused of masterminding high-profile attacks in Kabul and is believed to have close links to al Qaeda."
Earlier Reports, as it was happening: