The blast completely destroyed the embassy’s reception area and parts of neighboring homes.
One official told Reuters news agency: “We think it was a booby-trapped car.”
An investigation is under way into what French Foreign Minister Laurent Fabius called an “odious act”.
Laurent Fabius said French officials were working with the Libyan authorities to identify those responsible.
The explosion happened shortly after 07:00 in a smart, residential area of Tripoli.
The blast took place in a small side street, causing extensive damage to the buildings and parked cars.
Diplomatic missions in Libya have been attacked in the past, the most notable being the US consulate in the eastern city of Benghazi in September 2012 that led to the death of its ambassador Christopher Stevens and three Americans.
This is the first major attack on a foreign embassy in the Libyan capital, observers say.
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