The blast occurred early today in an area of shops and restaurants. Police say it is not yet clear who was responsible.
An investigation involving NATO-led peacekeepers has been launched.
The explosion occurred with Serbs and leaders of Kosovo's ethnic-Albanian majority preparing for direct talks on September 28 aimed at settling the disputed province's final status.
Ethnic Albanians seek independence, but this is opposed by Serbs.
In a statement condemning the apparent attack, the Kosovo government said there are no signs of a link between it and the deadlocked talks.