The vintage C-47 aircraft crashed while taking off at Burnet Municipal Airport, the local police department have confirmed.
The plane erupted into flame after crashing, with grass in the airfield also catching fire.
Video taken at the scene shows the plane lifting off before quickly tilting and crashing back to earth.
It then quickly bursts into flames with witnesses reporting the plane was quickly “destroyed” by fire.
Aviation tracking website AirLive said 13 people were onboard the plane when it crashed.
Eight were hurt, with one passenger airlifted to South Austin Medical Centre to be treated for burn injuries.
The local police department said: “At 9:18 AM, BCSO Communications was notified of a plane crash on the runway at the Burnet Municipal Airport.
“The aircraft was reportedly attempting to take off when the crash occurred.
“All people onboard survived and were able to exit the aircraft.
“One person was airlifted by helicopter to SAMMC with significant burn injuries. Seven persons were ground transported to Seton Highland Lakes with minor injuries.
“The aircraft did catch fire as well as nearby grass. The fires were extinguished by responding fire departments.”