A second bomb has been found in the area and made safe, officials say.
No-one has yet said they carried out the attack, which took place close to the Erawan Shrine in Bangkok's central Chidlom district.
The shrine is a major tourist attraction and the Thai government said the attack was aimed at foreigners.
Local media report that tourists may be among the casualties.
Defence Minister Prawit Wongsuwong said: "It was a TNT bomb... the people who did it targeted foreigners and to damage tourism and the economy."
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The Nation TV channel quoted Prime Minister Prayuth Chan-ocha as saying the government would set up a "war room" to coordinate its response.
Nation put the death toll as high as 27, saying at least three foreigners were killed, but there is no official confirmation.
The explosion occurred at about 19:00 local time (12:00 GMT). Some reports said the bomb had been on a motorcycle, others that it was tied to an electricity pole.
One bystander, Alessandro Ursic, told the BBC: "When I arrived they had already cleared the bodies from the ground outside the Erawan shrine but there were and there are still pieces of human flesh strewn around the intersection; it's really graphic."
Another, Richard Srikureja, said: "I was walking to a mall right next to the shrine and I heard a huge blast and people were just sprinting everywhere. It was total chaos and it's right in the middle of Bangkok."
No-one has yet said they carried out the attack, which took place close to the Erawan Shrine in Bangkok's central Chidlom district.
The shrine is a major tourist attraction and the Thai government said the attack was aimed at foreigners.
Local media report that tourists may be among the casualties.
Defence Minister Prawit Wongsuwong said: "It was a TNT bomb... the people who did it targeted foreigners and to damage tourism and the economy."
Read the latest updates here
The Nation TV channel quoted Prime Minister Prayuth Chan-ocha as saying the government would set up a "war room" to coordinate its response.
Nation put the death toll as high as 27, saying at least three foreigners were killed, but there is no official confirmation.
The explosion occurred at about 19:00 local time (12:00 GMT). Some reports said the bomb had been on a motorcycle, others that it was tied to an electricity pole.
One bystander, Alessandro Ursic, told the BBC: "When I arrived they had already cleared the bodies from the ground outside the Erawan shrine but there were and there are still pieces of human flesh strewn around the intersection; it's really graphic."
Another, Richard Srikureja, said: "I was walking to a mall right next to the shrine and I heard a huge blast and people were just sprinting everywhere. It was total chaos and it's right in the middle of Bangkok."
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