Officials have not confirmed the nationalities of those on board, but it is believed they are British.
The MoD said the crash is under investigation, but said enemy action is not believed to be the cause.
It is the first fatal accident involving a UK military helicopter in Afghanistan since the conflict began.
The crash happened near Kandahar air base, in Kandahar province.
A Ministry of Defence spokesman said: "We can confirm that a UK helicopter crashed in southern Afghanistan today.
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Our thoughts and prayers go out to the family and friends affected by this tragic event”
International Security Assistance Force
"The incident is under investigation and it would be inappropriate to comment further until families have been notified."
BBC defence correspondent Jonathan Beale said it is understood the helicopter was a Lynx.Read more HERE R.I.P.
I would guess that the soldiers killed are Special Forces?
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