Hundreds of people have been evacuated from the shopping centre though some people are reportedly still trapped inside.
Local police reported a man had been shot.
One witness said they saw a woman lying on the ground before sheltering in a jewellery store.
Waverley Council said on X: "A critical incident has commenced following the shooting of male at Bondi Junction. Just before 4pm today, emergency services were called to Westfield Bondi Junction following reports of multiple people stabbed. People are urged to avoid the area."
Multiple police cars and ambulances are attending the scene.
This breaking news story is being updated and more details will be published shortly.
Social media users reported people running across the pedestrian bridge outside the centre while others said they were being evacuated from the centre's car park.
Eastern suburbs local Ted Helliar posted to X: 'Something just went down at Westfields Bondi junction.'
'We were up there and all of a sudden all these people running towards us. Next thing dozens and dozens of people all running a screaming some bloke yells 'someone is stabbing everyone get out of here'.'
Another X user said hundreds of shoppers were hiding in the back of the David Jones department store, which had pulled down its shutters with reports a man had been seen running with a gun in the centre.
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