The driver was trapped inside his wrecked vehicle and rescuers faced a tricky operation to free him without the building collapsing in West Barns, near Dunbar, East Lothian, yesterday morning.
The front of the Eve Coaches vehicle, carrying 15 passengers, was embedded in the cottage which was empty because of renovations.
The impact left the car badly damaged and the bus crashed through the front wall of the cottage, lodging under the roof.
In addition to the driver, four bus passengers and two occupants of the car were also hurt and are being treated in Edinburgh Royal Infirmary.
The 65-year-old car driver and a bus passenger, whose conditions are serious, were taken to Edinburgh Royal Infirmary.
One resident said: "I heard an almighty bang and came outside. The bus had crashed and the car had taken an almighty hit."