A taxi went off-road and drove down one of Melbourne's busiest footpaths during peak hour on Thursday, leaving pedestrians looking on in disbelief.

One witness, Leigh Cawood, said she was on Little Bourke Street just after 5pm, where a truck appeared to have broken down near the corner of Swanston Street.

The taxi went off-road in Little Bourke Street on Thursday afternoon.

While traffic backed up along the busy Chinatown strip, Ms Cawood said a taxi driver lost patience and mounted the footpath and squeezed between a parked motorbike, a rubbish bin and a bank.

The taxi driver then returned to Little Bourke Street in front of the truck and continued on his way.