The assault, which took place late yesterday (September 14), killed two US Marines and injured several other members of the Allied forces at the Afghanistan base.
Heavily armed insurgents are said to have fired mortars and rockets at the camp before engaging in small arms fire. 18 members of the Taliban were killed during the attack, but Apache co-pilot Prince Harry is understood to have been about two kilometres away with fellow helicopter crews and so remained unharmed.
The militant group initially claimed that the attack was planned as revenge for a YouTube film which is said to have motivated rioters in Libya to kill the US ambassador and three other Americans this week (September 12).
"Last night, a number of mujahideen fighters have carried out suicide attacks on Camp Bastion of Helmand in revenge for the insulting movie by the Americans," spokesman Qari Yousuf Ahmadi told AFP by telephone.
However, this morning sources told Sky News that the Taliban in fact intended to kill or injure Prince Harry during the assault.
"It appears that rather than the attack being linked to the video, it was actually Prince Harry that was the target," said Sky News Chief Correspondent Stuart Ramsay.
"This is quite a development, that the Taliban is confirming Prince Harry was the primary target."
In a statement, the Ministry of Defence said that the attack was "contained" and confirmed that it is still trying to establish the number of servicemen and women who were present during the raid.
"A clearance operation including UK and ISAF forces is being conducted," it said. "We are in the process of accounting for our people, who were subject to a lockdown as is the case when a base is attacked.
"ISAF have confirmed that two US Marine Corps service personnel were killed and that there were some other ISAF casualties.
"With daylight, work to assess and investigate the attack continues and further details will be made as and when available."
Prince Harry turns 28 today. He arrived in Afghanistan last Friday (September 7) on his second tour of duty in the country.