About a foot of water collected in some places around East Bridge Street during the one-hour downpour.
The flash flood happened between about 1300 BST and 1400 BST and was followed by thunder and lightning.
Chris McCulloch, 44, said: "I've never seen rain like it in Scotland. All the streets coming down off the hill turned into streams."
Mr McCulloch told the BBC Scotland news website he was trying to pick his 11-year-old daughter Chrisanne up from a friend's flat after she got soaked "from head to foot".
Tearoom flooded"It was an absolute downpour," he said. "The water was going into the flat and I couldn't get down to her because the stairs down to the flat had turned into a river.
"A BMW got stuck in the water but then the police came and stopped people going through."
Mr McCulloch also said a local tearoom was flooded and water also got into other business premises.
He added: "As we were going across the Tay Bridge you couldn't see Kinnoul Hill."
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