Danny Doherty, a welder who was in his 60s, died in the crash around 4.30pm close to the Bayview Bar on the Redcastle to Moville Road.
His car was in collision with a 4×4 landrover. The driver of that vehicles was injured and taken to hospital but four passengers were unhurt.
Gardai who are investigating the collision have appealed for witnesses to contact Buncrana Garda Station on 0749320540.
The road remains sealed off today while a technical examination takes place.