There are unconfirmed reports that ISIS has claimed responsibility for the attack.
The truck mounted the pavement at approximately 40mph and steered directly towards people watching a fireworks display in the city.
One witness called Antoine said: 'We were at the Neptune beach and a firework display had just finished. That is when we saw a white lorry. It was going quickly at 60-70 kilometres an hour.'
Gunshots rang out in the streets, with gunmen targeting hotels and cafes in the port city as residents were warned to lock themselves in doors for their safety . The RAID anti-terror squad has been deployed to the city.
Hundreds of people were watching fireworks along the promenade when the attack began.
The gunman jumped out of the truck after ploughing through the pedestrians and started opening fire. Officials said the driver was shot dead near the scene.
A second suspect is thought to be on the run.
An eyewitness said he saw a truck driver slam a vehicle into a crowd of revelers in the French resort city of Nice and then emerge shooting, killing many.
Wassim Bouhlel, said Nice's Promenade du Paillon, said that he saw a truck drive into the crowd and then witnessed the man emerge with a gun and start shooting.
'There was carnage on the road,' Bouhlel said. 'Bodies everywhere.'
Police have reportedly found weapons and bombs in the truck.
The attack happened in the Promenade des Anglais in Nice in the South of France while victims were watching a firework display
Separately, a fire erupted near the Eiffel Tower causing panic. It is not known whether the two incidents are linked.
A spokesman for the Alpes Maritime prefecture advised locals to 'stay indoors' as gunfire was heard, and a lorry was driven into a crowd on the Promenade des Anglais.
Eyewitnesses said there were 'bodies everywhere' with at least 100 people injured.
The truck driver crashed his vehicle and jumped out and started shooting.
Police are also searching for an accomplice.
At this stage, police are describing the incident as 'a major criminal attack'.
Sebastian Humbert, prefect for the Alpes - Martime area said: 'A truck rammed into the crowd over a long distance, which explains this extremely heavy toll.'
He said the driver has been shot dead by police. They are currently hunting for a second attacker.
The Gendarmerie Nationale tweeted: 'Emergency operation in progress. Keep calm and avoid downtown area. Follow the official accounts to be informed.'
Bodies could be seen lying on the floor by the beach, as the police and other emergency services tried to deal with a mass panic.
British holidaymaker Esther Serwah, 59, was staying in a hotel a short walk from the scene.
She said she had been on her way to the Promenade des Anglais for dinner with her daughters when people started screaming at her.
Mrs Serwah, from Surrey, said: ‘I was just walking to the Promenade and then I saw everybody running and I just didn’t know what was going on.
‘People were screaming at me in French but I didn’t understand.
‘Some people were lying on the streets dead and people were running over the bodies.
‘Everybody was saying it’s a terrorist attack. It’s just horrible, horrible, horrible.
‘I’m in shock. I’m still shaking.’
According to the White House: 'The president has been apprised of the situation in Nice, France, and his national security team will update him, as appropriate.'
There were also separate reports of a possible fire near the Eiffel Tower in Paris this evening according to witnesses
Officials said the truck mounted the pavement and steered directly towards pedestrians who were out in the city watching fireworks
Across the city, hundreds of people hid and locked themselves in cafes and bars to protect themselves from possible attack
Fireworks were filling the night sky as the drama unfolded, as the crowds enjoyed July 14th, which is always a Bank Holiday in France.
'It is absolute chaos,' said an eye witness who works in the Nice judiciary. 'There are reports of dozens of people killed, and many more injured. Bodies are lying everywhere.
'Police are flooding the streets, including anti-terrorism officers. Nobody knows what to do, except to hide away. Gunmen are meant to be targeting hotels.'
The lorry was seen mounting the pavement and piling into anyone the driver could see, ramming over those who tried to run away.
Regional newspaper Nice Matin quoted its own reporter at the scene saying there were many injured people and blood on the street. It published a photograph of a damaged, long-distance delivery truck, which it said was 'riddled with bullets' and images of emergency services treating the injured.
Damien Allemand, the paper's correspondent, was quoted as saying: 'People are running. It's panic. He rode up onto the Prom and piled into the crowd ... There are people covered in blood. There must be many injured.'
The area around the Promenade is full of hotels and restaurants, which that were all packed at the height of the holiday season.
France is still under a State of Emergency following last year's attacks on Paris, when almost 150 people were murdered by ISIS and Al-Qaeda operatives.
Nice mayor Christian Estrosi, who was at the celebration when it happened, tweeted: 'Dear people of Nice, the driver of a truck seems to have left dozens dead. Stay for now in your home. More info to come.'
Eyewitnesses reported there were exchanges of gunfire between police and suspected terrorists in Nice, southern France
Both groups are well known for driving vehicles into innocent people, prompting fears that tonight's incident could be linked to their activities.
Bastille Day, which celebrates the storming of the Bastille prison in Paris during the French Revolution of 1789, is the country's biggest public holiday.
The truck rammed into the crowd on the Promenade des Anglais seaside walk in the centre of town, regional newspaper Nice Matin reported, citing its own reporter at the scene.
French television channel BFM TV said the local prefecture in Nice was treating the incident as an attack and was asking people to stay at home.
The Mayor of Nice has already admitted that 'dozens of people' have been killed in tonight's attack
The Mayor of Nice has admitted that 'dozens are feared dead'.
There have been reports of exchanges of gunfire at the scene.
Horrific images depicting men and women lying on the side of a road close to the Promenade des Anglais appeared on social media.
Several people have been injured as videos emerged showing people fleeing in panic. The crash itself was not shown however.
Fireworks were filling the night sky as the drama unfolded, as the crowds enjoyed July 14th, which is always a Bank Holiday in France.
France has been repeatedly targeted in recent months, but it is not yet known whether the incident is terror related.
The country is still under a State of Emergency following last year's attacks on Paris, when almost 150 people were murdered by ISIS and Al-Qaeda operatives.
'Dear Nicois,' local government leader Christian Estrosi wrote in a tweet. 'The driver of a truck appears to have killed dozens of people. Stay at home for the time being. More news to follow.'
Regional newspaper Nice Matin quoted its own reporter at the scene saying there were many injured people and blood on the street. It published a photograph of a damaged, long-distance delivery truck, which it said was 'riddled with bullets' and images of emergency services treating the injured.
Damien Allemand, the paper's correspondent, was quoted as saying: 'People are running. It's panic. He rode up onto the Prom and piled into the crowd ... There are people covered in blood. There must be many injured.'
Colin Srivastava told BBC News: 'We were basically sitting just in front of the Old Town in Nice and saw several hundred people running towards us looking panic stricken.
'We tried to ask a few of them what the hell was going on and finally got one that said, 'You need to go, the police have told us to run'.
'Just around about the base of the hill where the castle is in Nice the police came running along and said, 'Run now'.
'We had absolutely no idea what was going on, to be honest with you.
'When we got down into the port in Nice we were told by a few people who'd obviously run faster than we had that there was the story of a lorry that had gone into the people, basically cannoned into the crowd, and there were also shots fired, which is something we didn't hear about until just now on French news.'
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