Two people were confirmed dead, while three were injured. Seven people were seen being taking away in stretchers.
The gunman, man Haron Moris was also killed during the take over by the police.
Hundreds of police officers, including snipers had surrounded the Lindt Chocolate Café in Central District of Sydney shortly after Monis took over the building.
Brave five people were able to escape from the gunman several hours into the stand-off.
Chris Reason, a CNN correspondent said the gunman became extremely agitated when he realised what has happened, and started screaming orders at the remaining hostages.
He later demanded for an Islamic flag and a phone. He is believed to have acted alone, and doesn't appear to be a part of a bigger plot. Beyond the demand for the flag and the phone, nobody can say what his real motives are.
Monis is a 50-year-old Tehran born, self-styled sheik. He was born Manteghi Bourjerdi. He left Iran for Australia in 1996. He was well known to the Australian police and was currently on bail for more than 40 sexual offences.
He has previously be charged for sending hate letters to the families of Australian soldiers killed by insurgents in Afghanistan. He was last November accused of being an accessory to the murder of his ex-wife after her body was found badly burnt with knife wounds
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