A woman and a child were taken to the hospital after a parachutist from the Navy's Leap Frog team missed the landing zone and came down in the crowd.
Video obtained by ABC7 News shows the moments when he collided with the two.
"Everybody was like, 'Whoa, what just happened?' It was unexpected," said Monette Rockymore.
Rockymore and her daughter, Sophia, were standing just feet away and shot this video.
MORE: SF businesses get boost with Fleet Week bringing in thousands of service members and visitors
The pair says they saw the woman being placed onto a stretcher with what appeared to be a neck injury.
Rockymore says, while still scary, she's happy more people weren't injured.
"I thought he was about to hit the stoplight all the way to the concrete zone, but I'm glad he made it to the grass area," she said.
Responding to the incident in a statement to ABC7 News, a Navy spokesperson said: "Safety is our number one priority. We cannot immediately assess what happened; however, we will review this incident to determine the cause."
This incident aside, this Fleet Week was by and large a massive success for the city of San Francisco.
MORE: Blue Angels roar over San Francisco Bay in dazzling Fleet Week air show
ABC7 News talked to several people along the city's Embarcadero, all of them saying San Francisco feels very much alive.
Throughout the weekend, thousands of people flooded into the city for the many sights and sounds of Fleet Week.
Everything from ship tours to the always popular Blue Angels.
"The Angels, they rule. The Angels always put on the best show. They always put on their best, and they steal the show," said Brian Abazan.
That sense of excitement also echoed by people like Steven and Morgan Kramer, who drove in with their five children Sunday.
MORE: Service members honored at SF Fleet Week for acts of heroism across state
"For a long time there just wasn't much going on. So, it's just really, really good for us to see our city coming back to life," Morgan said.
For the Kramer family, Fleet Week holds a special significance, with both Steven and Morgan having relatives who served in the armed forces.
A tradition perhaps set to continue with their 12-year-old son, who tells us his love of planes inspires him to want to be a pilot for the Navy one day.
"It was awesome and very loud, and I loved it a lot. I've been looking forward for this for months," Aaron said.
Fleet Week is set to officially end on Monday.