The drone attack came amid ongoing Iranian missile and drone strikes on Gulf states that host US bases, following US and Israeli strikes on Iran on Saturday.
The US embassy told its citizens to shelter in place immediately and avoid the embassy until further notice due to an attack on the facility.
It also issued a shelter in place notification for Jeddah and Dhahran and limited non-essential travel to military installations in the region.
A loud blast was heard and flames were seen at the US embassy in Riyadh early on Tuesday, three people familiar with the matter said, with one person saying the fire was minor.
Black smoke was seen rising over Riyadh's Diplomatic Quarter, which houses foreign missions.
A "limited fire" broke out at the embassy, causing minor material damage, a spokesman for the Saudi Arabian Ministry of Defence said on X.
There were no reported injuries, two of the people familiar with the matter said, given the building was empty in the early morning hours.
An embassy spokesperson did not immediately respond to a request for comment, nor did the Saudi government media office.
with dpa