The explosion took place on Wednesday as President Xi Jinping completed a tour of the region.
Three people were killed and 79 were injured when attackers used knives and detonated explosives at Urumqi's south railway station, officials said.
Xinjiang has seen a series of violent attacks in the past year.
Beijing blames the violence on separatists from the mainly Muslim Uighur minority.
This incident follows an attack on Kunming station, in southern China, in March - also blamed on Uighurs - in which 29 people died.
'Understand separatism'
Mr Xi's visit to the western Xinjiang region was the first since he became president in 2012.
"The battle to combat violence and terrorism will not allow even a moment of slackness, and decisive actions must be taken to resolutely suppress the terrorists' rampant momentum," Xinhua news agency quoted him as saying after the attack.
Mr Xi said it was essential to "deeply understand Xinjiang separatism".
Xinjiang's local government news portal said the attack began with an explosion at an exit of Urumqi South Station at around 19:10 as the train from Chengdu arrived.
"According to initial police investigations... the attackers used knives to stab people at the station exit, and detonated explosives at the same time," it said, adding that all the injured were receiving medical treatment.
Witnesses told Xinhua news agency that the explosion appeared to be centred around luggage left on the ground between a station exit and a bus stop.
However, several microblog posts and photos related to the explosion appeared to have been quickly deleted from Sina Weibo, China's largest microblog platform.
The local government described it as a "violent terrorist attack" but said the situation was now under control.
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