The gigantic rocket successfully blasted off at 8:33 am Central Time (1333 GMT) from Starbase, the private SpaceX spaceport in Boca Chica, Texas.
The Starship capsule had been scheduled to separate from the first-stage rocket booster three minutes into the flight but separation failed to occur and the rocket blew up.
"As if the flight test was not exciting enough, Starship experienced a rapid unscheduled disassembly before stage separation," SpaceX tweeted.