A policeman was killed while two others were injured in a suicide blast in Katling Bazaar of the city, officials said on Saturday.
According to police, the attack occurred when police was on routine patrolling.
The bomber had initially lobbed a hand grenade at police personnel standing outside a police station in the area, officials said. When he was chased by the personnel, the bomber blew up himself, they said. The attacker had an accomplice who managed to flee and police had started a search for him, they added.
Later, police confirmed that the attacker’s accomplice was shot dead.
The injured were shifted to a nearby hospital for treatment.
Tension prevailed in the area in the aftermath of the incident.
Mardan is situated around 50 km northeast of Peshawar, on the edge of Pakistan’s lawless tribal belt, known as a haven for Taliban and alQaeda linked militants.