The woman was shot in the torso and was taken to the hospital where she is expected to be OK.
Police say the woman driving a black Chevy Lumina used her car as a weapon. They say she started to drive toward an officer and that is when he felt threatened. He says he shot her in self defense.
"A woman driving a car erratically, she was basically striking vehicles as she was driving, officers responded to the scene to try to stop her, she attempted to run over an officer," said Officer Samson Chan.
It happened on Folsom Street between 7th and 8th, right in front of the Brainwash Cafe and Laundry mat.
"We came out of the back door and saw people running up the ally. We said 'What's going on?' and we looked and everyone started ducking, 'Oh, they're shooting,'" said San Francisco resident Ed Straine.
Police say right before she was shot, the woman was driving erratically down the street and hit four other cars before police tried to stop her.
"I heard a screech then a collision and what sounded like a really loud bang and I looked up and was terrified and went inside," says San Francisco resident Diego Codina.
Police say she is expected to survive.
"She had a dog in the car, it was all terrified, trying to get to her, I don't know, I feel bad for the dog," said San Francisco resident Cheyenne Evans.
Police shut down the section of Folsom for about an hour and a half while they gathered evidence and people gathered to watch.
"All it takes is a hooting to bring a neighborhood together because everyone came out was talking, hanging out, watching what happened," said Straine.
Police say the officer who was involved in the shooting has been with the department for several years. He wasn't wearing his uniform at the time, he was in street clothes, but he had his police star on his shirt.