Police have closed Bye-Pass Road in Bolton-le-Sands after an accident near the traffic lights.
Police said they were called to a collision at 3.18pm near the Far Pavilion restaurant.
Two people have been injured and an ambulance is at the scene.
Bus services have been affected by the road closure.
Cumbria North Lancs Stagecoach tweeted: “#Lancaster Owing to an accident by St Michael’s Lane in Bolton-le-Sands all traffic is currently being diverted through the village. Owing to the narrow nature of the road we expect to see some delays to our service 5, 55 and 555.”