The incident took place as the aircraft lost control on the runway while preparing to take off and hit two parked helicopters.
The plane, operated by Summit Air, was not carrying passengers as it was trying to leave what is considered to be one of the world's most unsafe airports due to the shortness of its runway and its location surrounded by mountains.
According to sources at Grande Hospital, sub-inspector of Nepal Police Rudra Bahadur Shrestha who was seriously injured, breathed his last while undergoing treatment.
Among the dead were the pilot of the plane and two police officers who were near the parked helicopter.
It's believed a small plane crashed into a helicopter while taking off from an airstrip.
Lukla airport, also known as Tenzing-Hillary airport, is the gateway to Mt Everest.
A civil administrator, Narendra Kumar Rana, said the four passengers and a flight attendant on the plane were safe.
A hospital official loads a body of a plane crash victim into an ambulance outside the Teaching Hospital in Kathmandu, Nepal, Sunday, April 14, 2019.
Both aircrafts are private airline companies that cater to tourists and Nepalese in the country's remote areas.
It is often referred to as one of the most hard and unsafe airports in the world because of a short runway (527 metres) and challenging terrain. Only helicopters and small winged aircraft are allowed in this airspace.