Prince Harry was unharmed after an attack on the Camp Bastion military compound in Afghanistan in which two US Marines were killed and several more wounded.
Harry, an Army captain, is based at the compound in Helmand province in the south of Afghanistan for his second tour of duty.
US officials said the attack last night was by heavily-armed insurgents and involved a range of weaponry, including mortars, rockets or rocket-propelled grenades, as well as small arms fire.
Earlier today Sky News reported that a Taliban chief said Prince Harry was the primary target of the attack.
Harry was about two kilometres away with other crew members of the Apache attack helicopters, of which he is a co-pilot gunner, when the attack took place, sources said.
There are no indications of any British fatalities or injuries.
A spokesman for the International Security Assistance Force coalition (Isaf) in Afghanistan said the attack occurred near an airfield on the north-east side of the base, which houses American forces in Camp Leatherneck.
A number of aircraft, hangars and other buildings at the base were hit and badly damaged by insurgent fire.
A Ministry of Defence spokesman in London said: "We are aware of an incident that has taken place at Camp Bastion, which is currently being dealt with."
Price Harry, who celebrates his 28th birthday today, arrived in Afghanistan last Friday.
He has been undergoing training to fly operations in Apache attack helicopters and is expected to start flying missions this week as a co-pilot gunner.
Camp Bastion is a huge base in the middle of the desert and is shared with US, Estonian, Danish and Afghan troops. The site is estimated to be four miles long, two miles wide and accommodates around 28,000 people.
It is the logistics hub for operations in Helmand, with supply convoys and armoured patrols regularly leaving its heavily-defended gates, to support the military forward operating bases, patrol bases and checkpoints spread across the province.