Port Stephens police are investigating after an overnight explosion at an Anna Bay home.
Emergency services were called to the property on Morna Point Road around 10pm, where they found a 37-year-old man and a 4-year-old girl with lacerations and shrapnel wounds.
They were treated at the scene but were taken to the John Hunter Hospital in a serious but stable condition.
It’s believed the explosion was caused by improper handling of military supplies.
The bomb squad and Defence Force have helped remove them.
Anyone with information about the incident is urged to contact Crime Stoppers on 1800 333 000.