The Piper PA-28 took off from Bankstown Airport, in Sydney's southwest, about 2.20pm on Thursday before crashing into trees next to sporting fields at nearby Bossley Park about five minutes later.
A 37-year-old man and a 34-year-old woman were onboard but sustained only minor injuries, NSW Police said.
A NSW Ambulance spokesman told AAP the pair did not need to go to hospital and refused further treatment from paramedics.
The plane was on a training flight and appeared to suffer engine failure before making the emergency landing, Fire and Rescue NSW said in a statement.
It was believed to be carrying up to 340 litres of fuel and a 100m fire protection zone was set up to monitor for leaks.
The park where the plane came down neighbours Mary Immaculate Catholic Primary School and principal, Beverly Coffey, said parents coming to pick up their children informed staff of the crash.
"We thought they might have had too many drinks in the afternoon, (then) we looked out and we could see it," she said.
The Piper PA-28 came down near a school with students close to leaving for the day. (Dean Lewins/AAP PHOTOS)
Teachers and administrative staff donned high-visibility clothing to handle "some pretty upset kids", but the crash did not otherwise impact the end of the school day, Ms Coffey said.
It appeared the plane may have used trees in the park to soften its landing, she said.
One parent told Seven News the pilot had protected people on the ground by crashing into the trees.
"I honestly think that the pilot saved a bigger accident than what's actually happened," she said.
The plane had risen to an altitude of about 300m at 144km/h before crash-landing about two minutes later, according to data from aviation tracking site FlightAware.
The Australian Transport Safety Bureau is investigating.
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