The attack, described by Ukrainian officials as a targeted strike on civilians, is among the largest single attacks reported in the country this year.
Authorities said the bombing struck a street where two city buses were operating at the time. Ukrainian President Volodymyr Zelensky described the location as a bus stop.
Images released by the police showed bodies scattered across a debris-strewn street, alongside the charred remains of what appeared to be a bus.
The latest attack comes as Russia's invasion of Ukraine continues into its fifth year, with Moscow showing no signs of backing down.
Kramatorsk, in eastern Ukraine, remains a strategically important location amid Russia's efforts to expand its control over the region.
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