The crash happened at about 8:32 a.m. on Manhattan-Monee Road between School House Road and Scheer Road, near Kankakee Road, Illinois State Police said.
Ten Manhattan School District students and a bus driver were heading east, when they crashed head-on with a passenger vehicle, ISP said.
Manhattan police said all children and the driver were taken to area hospitals as a precautionary measure. No one on the bus was seriously injured.
Many were taken to Silver Cross Hospital in New Lenox.
"This was a very scary event. So, we actually triple our patient size because we have the patient, the child, as well as the two parents. We also have to give emotional support, as well," said Jill Pateros, Silver Cross Hospital emergency services director.
"So were identifying for maybe just a minor sprain, but we still want to do thorough exams on all patients to make sure they don't have any deformities or extremities, making sure they (don't) have a broken bone or signs of head injuries or concussions," Silver Cross emergency room Dr. Aaron Tabor said.
All parents with children involved in the crash were contacted.
Officials confirmed the driver of the passenger vehicle died at the scene.
Video shows as some children were taken out of the school bus and onto an ambulance at about 9:18 a.m.
Manhattan School District said all students were released from the hospital by 1 p.m. to parents and guardians.
"Our hearts are with everyone impacted by this tragic incident," Superintendent Damien Aherne said. "We are grateful for the swift response of our first responders and our school staff, whose priority was ensuring the safety and well-being of our students. We will continue to provide support to our students and their families during this difficult time."