The axeman – reportedly a 17-year-old from Afghanistan – launched the vicious attack on a train in Würzburg, southern Germany.
A huge operation – involving armed police, firefighters, paramedics and at least one a helicopter – was launched.
ISIS has claimed responsiblity for the attack via its al-Amaq news agency, claiming the teen “answered calls to strike countries participating in the anti-#ISIS coalition #Germany”.
The statement released on Twitter said: “Individual who carried out the axe attack in Germany was a soldier of the Islamic State who executed the operation in response to calls to target nations in the coalition fighting the Islamic State.”
The axeman entered Germany as an unaccompanied child refugee, according to Bavarian interior minister Joachim Herrmann.
He reportedly shouted “Allahu akbar” – which means “God is great” in Arabic – before launching the violent attack.
Herrmann added a hand-drawn ISIS flag was found in the suspect’s bedroom. Two of those hurt are in a critical condition, Herrmann added, while a Chinese family were among those injured.
At least three of his victims are seriously injured. Armed police shot the axe attacker dead as he tried to flee the scene, Mr Herrmann has confirmed.