Holidaymakers at the Tunisian hotel told how there were people on the beach with guns.
David Schofield, who heard an explosion while sunbathing by the pool, told Sky News: "We heard people saying there were guns on the beach and people were shooting on the beach.
"I don't know what's going on. I went to reception and they said the police have told us to get everyone inside."
The Foreign Office said it was aware of the reports and was investigating.
Stories continue to emerge of the heroism and compassion of Tunisians who tried to help in the wake of the Sousse attack.
Seifeddine Rezgui was halfway through a Masters degree and took exams at the Institute for Applied Science and Technology before the attack.
As details of the dead continue to surface, James Jordan met Mohamed Sabhi, who ran towards the carnage to shepherd tourists to safety.