The 75-year-old writer had been subjected to death threats by Iran in the 1980s - when Ayatollah Khomeini declared his works to be blasphemous.
New York's governor said a state police officer intervened - saving Sir Salman's life - as well as the event's moderator who was also injured.
The attack took place at an event at the Chautauqua Institution in the west of New York state.
Warning: This report contains distressing scenes.
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