A Fire and Emergency New
Zealand spokeswoman said nobody was trapped, but four people suffered injuries.
A St John Ambulance spokeswoman said two ambulances were sent and three people with moderate injuries were transported to Palmerston North Hospital.
One other person with minor injuries was assessed at the scene.
Two fire trucks and one support vehicle from Dannevirke attended the crash and fire crews assisted with patient care until the arrival of ambulances.
Denmark St resident Francie Edgington said she was closing her curtains when she heard a "big bang".
"I heard sirens so I went the front of the house to have a look and sure enough there it was," Francie said.
She said a street light was "bent right over" and a vehicle towed from the scene appeared to have suffered the worst damage. The other damaged car remained at the scene on Thursday morning.
Police inquiries into the circumstances of the crash are ongoing.
