Frightened tourists screamed as temples crumbled around them when the 7.8 magnitude earthquake rocked Nepal, killing thousands and causing widespread damage.

Mobile phone footage captured by a tourist revealed the panic and confusion felt as the quake struck the town of Bhaktapur, on the outskirts of Kathmandu, on Saturday.

Bhaktapur, a UN World Heritage site known as Nepal's 'cultural gem', is filled with ancient Hindu and Buddhist temples, which can be seen in the amateur video shaking and crumbling as the quake strikes.

At the moment of impact the town square was packed with a mixture of locals and tourists, who screamed and clung to each other for comfort as plumes of dust spread from the destroyed buildings.

Over 5500 people are confirmed dead from the earthquake, while hundreds of thousands have been left homeless or living in makeshift tents.