The explosion at about 10:15 p.m. Sunday night was heard throughout the exclusive Las Condes neighborhood where the embassy is located, according to the daily El Mercurio.
A Foreign Office spokesman said it wasn't immediately clear whether or why the embassy had been targeted.
"We share the area with a number of other buildings, including the Israeli Embassy, a tobacco company, banks and other things," a Foreign Office spokesman said, speaking on condition of anonymity in line with department policy.
He said the embassy had not received any threats and that an investigation was under way.
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