Georgian forces and South Ossetian separatists have been exchanging heavy fire just hours after agreeing to a ceasefire and Russian-mediated talks.
Russian media reports said Georgia had launched a tank-led attack on the separatist stronghold of Tskhinvali, and airstrikes on rebel positions.
Georgia says it aims to finish "a criminal regime" and restore order.
At least 15 people are reported dead. Moscow called on the world community to work "to avert massive bloodshed".
At Russia's request, members of the UN Security Council are holding a rare emergency session to discuss a response to the escalating violence.
The BBC's Matthew Collin in Tbilisi says there has been a series of huge explosions and rocket fire in and around Tskhinvali.
Hundreds of fighters from Russia and Georgia's other breakaway region of Abkhazia are reportedly heading to aid the separatist troops. BBC NEWS / Al Jazeera
also see: Evidence of U.S. Military Presence in Georgia on infowars.com