It was not immediately clear who was responsible for the attack, which came just days after Afghan President Ashraf Ghani offered the Taliban a three-month ceasefire.
Military helicopters were firing above the Eidgah Mosque in Reka Khana district, where smoke was rising as police and the interior ministry said clashes were underway, amid a heavy security presence near the Kabul Stadium.
"This morning a group of terrorists took over a building in Reka Khana and fired several rockets towards Kabul," interior ministry spokesman Najib Danish told AFP.
"Two people have been wounded. Security forces are fighting the terrorists."
Kabul police spokesman Hashmat Stanikzai confirmed that fighting was underway near the mosque, and said he could not confirm casualties yet.
"Police have cordoned off the area," he said.
Ghani unveiled the government's latest ceasefire gambit during an Independence Day address late Sunday, saying security forces would observe the truce beginning this week - but only if the militants reciprocated
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