Police have now confimred that a number of people have died.
A spokesman said: "Police were called to a serious firearms incident in Biddick Drive, in the Keyham area of Plymouth at around 6.10pm today [Thursday 12 August].
"Officers and ambulance staff attended.
"There have been a number of fatalities at the scene and several other casualties are receiving treatment.
"A critical incident has been declared.
"The area has been cordoned off and police believe the situation is contained.
"Road closures are in place so please avoid the area.
"We are appealing to the public not to speculate or share pictures of the scene on social media or anywhere else.
"We will provide more information on log number 768 of 12/08/21 as soon as we can."
Initial reports claimed that there were several victims and multiple fatalities, but the incident was not treated as "terror related".
The suspect involved is believed to have been shot and is not on the run.
The Hazardous Area Response Unit (HART), police and air ambulances all attended the scene.
Eyewitnesses have claimed that they heard "loud bangs" and gun shots".
Luke Pollard, MP for Plymouth, Sutton and Devonport, wrote on Twitter: "Awaiting confirmation of a number of victims but this looks like a very grim day for our city and our community.
"Pleasae can I ask that you think of the families and our community and not share any images or videos of any of the victims."
According to reports, three ambulances, not four as originally thought, landed in North Prospect area of Plymouth this evening.
An eyewitness said: "Looks to be some sort of serious incident north of St Levan’s Road.
"Both Devon and Cornwall Air Ambulances have landed and a lot of police/emergency unmarked heading that way.
"Three air ambulances and NPAS now."
Another added: "Have 2 medical helicopters and police helicopter flying around north prospect area."
South Western Ambulance Service wrote on Twitter: "We were called at 18:12 to an ongoing incident in Plymouth. We responded to the incident with a significant number of resources, including Hazardous Area Response Teams (HART), multiple ambulances, air ambulances, multiple doctors and senior paramedics."
Mr Pollard added: "Really worrying news coming out of Keyham in Plymouth.
"Please can everyone stay safe, stay indoors and follow police advice."
According to reports, air ambulances from across the country, including Southampton and Dorset, were at the scene.
A nearby school sports centre has been told to close down with people indoors being ordered to leave.
Police cordons were put in place around a block of flats to prevent pedestrians from walking along.
The road on which the incident took place was completely closed.
Johnny Mercer, MP for Plymouth Moor View, said: "I'm aware of a serious and tragic incident unfolding in Plymouth.
"Please obey all instructions from the Police and do not post rumours or speculation on social media."
The three ambulances later left the scene with two of them landing at Derriford hospital.
A nearby shopping centre was also reportedly evacuated, but it is not known whether the incidents are related at this time.
Police dogs were also spotted at the scene searching for clues.
Priti Patel described the incident as "shocking".
The home secretary said: "The incident in Plymouth is shocking and my thoughts are with those affected.
"I have spoken to the Chief Constable and offered my full support.
"I urge everyone to remain calm, follow police advice and allow our emergency services to get on with their jobs."
This is a breaking news story... More to follow