Four people, including a boy, two men in their 30s and a woman in her 40s died at the scene after a BMW SUV mounted a kerb and drove across a crowded beer garden outside the Royal Daylesford Hotel, in Daylesford, Melbourne, on Sunday night, police said.

A teenage girl was flown to a hospital in Melbourne, where she later died.

Police did not identify those killed, but said they were not local residents. It is unknown if any of the victims are related.

The driver suffered shock and minor injuries. The 66-year-old was taken to hospital where he remains under police guard and is yet to be interviewed, Victoria Police chief commissioner Shane Patton said.

Police are still trying to determine the cause of the crash and do not know if the speed of the car was a factor.

Mr Patton said the driver tested negative for alcohol and his blood was being tested for other substances.

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Two boys, aged 11 months and six years old, were among those taken to hospital in stable conditions.

Three adults remained in a Melbourne hospital on Monday, including a 35-year-old woman who is in intensive care.