The crash, involving a jeep and a car, happened just after 5pm outside the Topaz garage at Mountain Top.
Two ambulances, two fire crews and a number of Garda attended the scene after a collision involving two vehicles.
It appears a car pulling out of the garage was hit by a vehicle travelling on the main road.
At one stage traffic was down to one lane and Gardai were diverting vehicles coming from the Illistrin direction through the local business park where Highland Radio is based.
One person has been taken to hospital while another person was treated at the scene.
An eye witness at the time told Donegaldaily.com that it looked like one car may have struck another vehicle from the side.
“It looks fairly serious. There is a lot of activity and there are a lot of Gardai and ambulance people running around.
“The traffic is building up but Gardai are trying their best to move it along,” she said.
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