At least 27 people have been killed in an attack on a tourist hotel in the Tunisian resort town of Sousse, according to the interior ministry.
At least one gunman has been shot dead and another is being pursued, officials say.
Sousse is a popular tourist destination.
Tunisia has been on high alert since March when militants killed 22 people, mainly foreign tourists, in an attack on a museum in the capital Tunis.
The interior ministry told the BBC “a terrorist attack” was ongoing.
In a separate attack,
A man has been decapitated and several others injured at a factory in France in what President Francois Hollande has called a terrorist attack.
Two men drove into the Air Products gas factory near Lyon, officials said, before several explosions were heard.
One of the suspects, who was investigated by police in 2006, has been arrested.
The dead man was found with Arabic inscriptions on him and an Islamist flag was found near the site.
At a press conference from Brussels, Mr Hollande confirmed that two attackers had targeted the chemicals factory in Saint-Quentin-Fallavier, crashing into it in a car.
“We have no doubt that the attack was to blow up the building. It bears the hallmarks of a terrorist attack,” he said.