The 7.8 magnitude quake struck an area between the capital, Kathmandu, and the city of Pokhara, the US Geological Survey said.
Tremors were felt across the region, with further loss of life in India, Bangladesh, Tibet and on Mount Everest.
The government has declared a state of emergency in the affected areas.
A
national police spokesman told the BBC that 970 people had died in the
quake, and that more than 1,700 had been injured. At least 539 people
were killed in the Kathmandu valley, he added.
Nepali Information
Minister Minendra Rijal said there had been "massive damage" at the
epicentre, from where little information is emerging.
Rescuers are digging through the rubble of collapsed buildings in the
capital trying to reach survivors, as thousands prepare to spend the
night outside as darkness fell.
A number of historic buildings have been destroyed.
Among those wrecked was the landmark Dharahara tower, with many feared trapped in its ruins.
After
the earthquake struck, frightened residents came out into the streets.
Mobile phones and other communications have been disrupted.
Major historic monuments in the Nepalese capital have been destroyed
in the powerful earthquake, eyewitnesses and officials have said.
These
include a nine-storey tower, temples and some parts of what was once a
royal palace, all listed as Unesco world heritage sites.
Pictures posted on social media show some of the monuments have been reduced to rubble.
Eyewitnesses say several others now have cracks and could collapse.
Officials have said some temples and monuments at other world heritage sites near Kathmandu have also been damaged.
These sites are Nepal's major tourist attractions.
Nepal had lost several such monuments during a major earthquake in 1934.
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