Three ambulances were called to the incident at the Blue Banks near the town at 5.10pm.
A fourth ambulance was called there shortly before 6pm.
However fears that the incident was serious have abated with news that all those injured in the crash suffered minor injuries.
One person was taken to Letterkenny General Hospital for treatment with the rest of the injured treated at the scene.
The road was closed in both directions, with traffic coming from Letterkenny towards Kilmacrennan being diverted at Illistrin.
But the road was re-opened around 6.40pm.
The incident where the crash happened is a notorious accident blackspot with several sharp bends.
The road was to have been upgraded but was cancelled last year.