The blast occurred in a building passageway, Bavaria state police said, adding that the injured individuals were two Ukrainian citizens.
Hours later, the city's main train station was closed after an additional suspicious object was found there, but rail operations resumed later in the morning.
News outlet Bild reported that early in the morning, a hand grenade detonated in front of a jewellery store and that the train station itself was apparently not the target.
A police spokesperson said details on the explosive device remained unclear.
Augsburg is a regional transport hub around 55 kilometres (35 miles) northwest of Munich.
(Reporting by Ayhan Uyanik in Augsburg and Thomas Seythal in Berlin, editing by Ludwig Burger)

A German police officer secures the scene of an explosion near the main train station in Augsburg, southern Germany, 02 September 2026. An explosive device detonated near Augsburg Central Station early on 02 September. Two Ukrainian nationals, aged 17 and 18, suffered minor injuries. Bavarian State Police cordoned off the area and launched a large-scale investigation. EPA/ANNA SZILAGYI
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