The clock struck 03.15 local time, on New Year's Eve, when the police were alerted about an incident in the oldest, most visited, and famous part of the city, the so-called French Quarter.
According to witnesses, a person in a white pickup drove around the police barricades and then drove straight into the crowd on the famous Bourbon Street. Directly, reports emerged that there were several fatalities.
At least 15 people have died and around thirty have been injured.
At a press conference, Police Chief Anne Kirkpatrick stated that the act was intentional and that the perpetrator "tried to kill as many as he could". The man allegedly opened fire on the police after the car ride, injuring two officers who are in stable condition.
Mayor LaToya Cantrell also participated in the press conference, describing the incident as a terrorist attack: "The city of New Orleans has been hit by a terrorist attack that is still being investigated", she said.
The FBI is investigating the incident as a terrorist attack. The Department of Homeland Security is assisting in the investigation.
A suspected explosive device and weapons found at the scene are being examined. According to the FBI, they do not believe the driver acted alone.
At 14:00 Swedish time, confirmation came that the suspected perpetrator was dead after a shootout with the police.
USA's President Joe Biden said at a press conference that the FBI has found videos that the driver posted on social media hours before the attack, saying he was inspired by IS.
An IS flag, weapons, and "possible" explosive devices were found in the car. The FBI is investigating potential links to foreign terrorist organizations.
Biden praised the police for "quick and brave actions" and promised "100 percent federal support".
The perpetrator has been identified as a 42-year-old American citizen from Texas, announced the FBI. He had previously served in the US Army for several years.
Sources: AP, BBC, and CNN