Sporadic aerial firings are still reported from the area as the Presidential security guards tried to disperse thousands of protesters by opening fire outside the palace compound.
According to the Ministry of Public (MoPH), at least eight people including a reporter were injured in the incident.
The violence sparked after the protesters demanded clarification from the palace regarding the brutal beheading of hostages but they did not receive any feedback.
The protesters gathered near the palace compound in Pashtunistan area this morning with earlier reports suggesting at least 10,000 protesters gathered in the city this morning, carrying the coffins of the victims which included women and a child who were beheaded by the militants.
The victims whose dead bodies were found on Saturday were believed to have been killed by the militants loyal to the Islamic State terror group.