Attackers detonated a huge car bomb outside the building, before racing into parliament itself, reports say.
Police are evacuating the premises, while trying to fight off the attackers.
The Taliban say they are carrying out the attack to coincide with a vote to endorse a new defense minister.
The incident happened as new Defense Minister Massoom Stanekzai was being introduced to lawmakers, who need to endorse him.
Pictures on social media showed parliament full of smoke and people running for cover.
Local media report another explosion in the Dahmazang area of Kabul city.
Television was broadcasting live from the building when the attackers struck and lawmakers were seen fleeing the building.
One female lawmaker is reported to have been wounded.
Afghanistan has been without a full-time defense minister for several months, and the attack is sending a clear message to the government by putting out today’s parliamentary proceedings.
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