It also damaged two other buses, next to it.
The buses were three of four filled with Israeli tourists, who had just flown in.
Bulgaria is a popular vacation spot for Israelis.
Israel was quick to place the blame for the attack on Iran, pointing at a chain of other attacks, in other countries.
Officials in Bulgaria has promised to investigate the explosion, and does consider terrorism a possibility.
Witnesses have said that the explosion seemed to come from beneath the bus.
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