Another terrorist reportedly went into another classroom which had 60 students in it and blew himself up, killing most of the students. So far, 132 children have been confirmed dead in the massacre.
The insurgents were said to have had inside information before carrying out the well planned attack and there are people who believe the brutal attack was in revenge of Malala winning the Noble Prize while some say the school was attacked because the students aspired to be soldiers. See some harrowing photos from the aftermath of the massacre after the cut...
Shocking eye witness accounts of what happened...culled from UK Daily Mail
At first, the children thought it was just a drill. Then the screaming began. As the pupils poring over their books realised the bangs they could hear were the sounds of guns fired in anger, panic spread.
As Pakistani special forces engaged the attackers, harrowing eyewitness accounts of the massacre emerged from survivors.
By 10.15, at least 60 pupils were already dead as hundreds of Pakistani soldiers poured from lorries to seal off the area and take the battle to the Taliban fighters, all of whom were wearing suicide vests.
One 15-year-old student Shahrukh Khan, who was shot in both legs, told how he hid under a bench and played dead to avoid being killed by the insurgents.
Speaking from his bed in the trauma ward of the city's Lady Reading Hospital, the teenager told how he even shoved a tie in his mouth to stop him from screaming out in fear of the gunmen.
Khan described how, after they burst in shouting 'Allah-o-Akbar' - which means 'God is greatest' - one of them shouted: 'There are so many children beneath the benches, go and get them'.
He said: 'I saw a pair of big black boots coming towards me, this guy was probably hunting for students hiding beneath the benches.'
Khan said he felt searing pain as he was shot in both his legs just below the knee.
He decided to play dead, adding: 'I folded my tie and pushed it into my mouth so that I wouldn't scream.
'The man with big boots kept on looking for students and pumping bullets into their bodies. I lay as still as I could and closed my eyes, waiting to get shot again.
'My body was shivering. I saw death so close and I will never forget the black boots approaching me -- I felt as though it was death that was approaching me.'
Khan told how he tried to get up, but fell because of his injuries. Desperate to escape to safety, he crawled into the next room, where he the body of the school's office assistant body on fire.
He said: 'She was sitting on the chair with blood dripping from her body as she burned.'
Khan, who said he also saw the body of a soldier who worked at the school, then crawled behind a door to hide, where he lost consciousness.
He added: 'One of my teachers was crying, she was shot in the hand and she was crying in pain.
'One terrorist then walked up to her and started shooting her until she stopped making any sound. All around me my friends were lying injured and dead.'
A 10-year-old boy caught up in the massacre also spoke of his dramatic escape from Taliban gunmen as bullets whizzed past his head - having seen two of his classmates shot dead in front of him.