Two people were killed and many injured when a bomb went off in a market in this city in northwest Pakistan on Friday, police said.
The locally made timed explosive device was planted in a shop at Gur Mandi in Peshawar, a police official told PTI.
Only one of the dead had been identified, he said.
The bomb weighed 1.5 kg, police said, adding the area was cordoned off and a search launched for the attackers.
No one claimed responsibility for the attack.
Gur Mandi is a congested area which has a large market from where supplies of 'gur' (jiggery) are sent to all parts of Pakistan.
Peshawar has been hit by a series of bombings and suicide attacks since the army launched operations against the Taliban in northwest Pakistan last year.