Security footage has captured a high-speed crash which injured a family of five in Sydney's Inner West last night.

A 28-year-old man has been charged with multiple offences including driving under the influence and driving in a dangerous manner after his black MG SUV allegedly smashed into a Mercedes on King Street in Newtown about 7pm.

The 43-year-old driver of the Mercedes along with a 67-year-old woman, a 42-year-old woman, a nine-year-old girl and 12-year-old boy were all taken to Royal Prince Alfred Hospital with minor injuries.

CCTV footage shows the MG travelling down King Street before in smashes into the Mercedes.

The crash brought the busy road to a standstill as paramedics and police attended the incident.

Witnesses told 9News the crash happened in front of diners on the popular restaurant strip.

"People, kids [were] inside the restaurant," one witness said.

"We thought it was like a bomb."

"I hope the family is okay because they are completely innocent," another added.

The driver was treated by paramedics before being taken to St Vincent's Hospital for further assessment and mandatory testing.

He has been suspended from driving and will face court on August 4.

His 20-year-old male passenger was arrested at the scene after he allegedly attempted to interfere with police investigations.

He was taken to Royal Prince Alfred Hospital where police allege he assaulted a male constable.

The 20-year-old has not been charged.

Anyone with information or dashcam footage is urged to contact Inner West Police Area Command or Crime Stoppers on 1800 333 000.

DOWNLOAD THE 9NEWS APP: Stay across all the latest in breaking news, sport, politics and the weather via our news app and get notifications sent straight to your smartphone. Available on the Apple App Store and Google Play.