Britain's foreign ministry said a diplomat suffered minor injuries on Wednesday in an attack on a British embassy car in the Yemeni capital Sanaa.
Witnesses in Sanaa said earlier that three people were wounded when a rocket-propelled grenade hit the vehicle about three kilometres (two miles) from the British embassy.
"We can confirm an attack involving a British embassy vehicle in Sanaa this morning. There was one minor casualty among British embassy staff, and no other casualties," a Foreign Office spokesman said.
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Foreign Secretary William Hague said the blast was "a reminder that we have some way to go" in efforts to improve security in Yemen, which faces a growing threat from Al-Qaeda.
"All our diplomats there are remaining at home or in the embassy," he told BBC radio. "It is a difficult and dangerous place to work."
In April a suicide bomber hurled himself at the British ambassador's two-car convoy in a Sanaa street as it neared the British embassy compound, wounding three bystanders.
Al-Qaeda in the Arabian Peninsula (AQAP), the group's local branch, later claimed responsibility for the attack, which saw the embassy closed for two weeks.
