The attack comes a day after militants lobbed three grenades targeting mobile communication facilities in the city.
A senior police officer told rediff.com that militants hurled a grenade in Achabal Bus stand around 2pm, causing splinter injuries to a CRPF jawan and five pedestrians.
He said one of the injured civilians identified as Mohammad Jabbar (50) succumbed to injuries while being taken to Srinagar for specialised treatment.
The target of the grenade attack was apparently a patrol party of security forces but the device missed the intended target and exploded on the roadside.
The whole area has been cordoned off and a hunt has been launched to nab the militants, the officer said.
He said the injured were taken to hospital and the condition of one of the civilians was stated to be "critical".
On Friday, militants exploded three grenades, targeting mobile communication facilities, at Karan Nagar and Shaheed Gunj localities of Srinagar. Four persons were injured in the series of attacks.
Image used for representative purpose
Fire at CRPF building in Delhi; head constable killed
Militants attack 3 mobile telecom showrooms in Srinagar; 1 hurt
PHOTOS: A violent Eid in Kashmir
Cloudburst near Amarnath base camp kills three
CPRF jawan goes on rampage; kills officer, injures 4 colleagues