The Audi-4 car owned by Interior Minister Fatmir Rexhepi and another car parked near the minister's home were damaged in the blast that occurred around 2am, the Kosovo Police Service said in a press release.
The minister was at home at the time of the explosion, which shattered windows on his house and on nearby houses. No one was injured.
The explosion was believed to have been caused by an explosive device planted under the minister's car. Police said two persons had been arrested, but gave no other details.
Rexhepi, a member of the leading Albanian party, the Democratic League of Kosovo, has received anonymous threats in the past.