The driver of the ‘Home James’ bus was taking children to school in the Lisnennan area close to Woodlands when the incident happened.
The driver managed to break in time escaping the full force of the brunt of the falling tree.
A number of the children and the driver were shaken but there were no injuries.
The front of the bus was damaged following the incident just before 9am.
Donegal Democrat reporter Diarmuid Doherty came across the accident just moments after it happened.
H revealed how he spoke to the bus driver who explained how the incident happened in “slow motion.”
He said the driver revealed how they had a very lucky escape and how he was thankful he managed to apply the brakes.
The bus has since ben towed away and the parents of the children have been informed of the incident.
People are being asked to take extra care on the roads across the county as an Orange Weather Alert status remains in place from Met Eireann.
There are numerous reports of trees down while up to 500 homes are without power in Falcarragh this morning.