The attack happened at about 22:00 local time (20:00 GMT), with a report made to police in Berlin that a white vehicle struck crowds at a Pride event in the capital.
Hundreds of thousands of people had gathered at Tiergarten park, near the iconic Brandenburg Gate, for the annual event, which is known as Christopher Street Day.
Some people were also stabbed in the incident.
Shortly afterwards, the Pride event was cancelled, with the word ‘Evacuation’ projected onto a large screen and attendees urged to leave the area.
At about 01:00 local time, police confirmed that one woman had been killed and 16 others had suffered injuries.
A short time later police confirmed they had located the vehicle believed to have been used in the attack, with it having crashed into a tree.