The young girl died less than an hour after being attacked on the number 60 bus on Wellesley Road in Croydon, South London.
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Witnesses say the brave driver did all he could to save the schoolgirl.
Edison Muriqi said: “The driver tried to help her and was covered in her blood all over his shirt.
“Apparently the driver was trying to help her by stopping the bleeding.”
Cops, the London Ambulance Service and London’s Air Ambulance were called at around 8.30am.
The teenager sadly passed away at 9.21am and a crime scene is still in place.
A boy who knows the victim has been arrested, the Metropolitan Police said.
Witnesses said the girls attacker had handed her flowers which she rejected before he stabbed her.
Multiple passengers claimed the weapon was a machete like blade.
Chevanice Thomas, who works on the nearby Landsdown Building site, said her friend saw a group of schoolchildren and adults running from the scene immediately after the stabbing at around 8.30am this morning.
Ms Thomas, 28, said: “Apparently she [the victim] broke up with her boyfriend yesterday.
“My friend said there was people with their children running everywhere.
“The only person who stayed was the bus driver. A lot of people got out their vehicles and started running.
“My friend said they were off the bus, talking, the boy and the girl.
“The boy gave her flowers, but she didn’t want anything to do with him.
“Then he got violent and stabbed her. My friend said the knife was like a sword.
“My friend was on [the opposite side of the road]. She crossed over just before she got stabbed.
“It was a packed bus. Kids and parents were running everywhere.”
Others witnesses told how the driver asked passengers to help find the weapon that killed her.
One passenger on Facebook said: “There’s been a stabbing Croydon. Stay away. The bus driver has just asked us all to search for a knife on the bus as he was the closest bus.
“Please be vigilant if you are in the area. When will this end?”
Chief Superintendent Andy Brittain, in charge of local policing, said: “Our immediate thoughts are with this young girl’s family who are facing the most tragic of news. Our officers are with the girl’s family to support them.
“I am in contact with the local community, who are clearly as concerned as we are about this tragic incident. I shall continue to update them throughout the day.
“My officers were immediately on scene to provide first aid and support paramedics.
“Acting on information provided to them, officers also worked closely with colleagues from across the Met and the British Transport Police to track a teenager in connection with the stabbing. I can confirm that an arrest was made at about 09:45hrs in the Croydon area. At this early stage we believe that he may have known her.
“A crime scene will be in place for some time, and I am grateful for the cooperation of residents.”
Police erected forensic screens and a tent metres from the bus after two ambulances left at around 10am.
Wellesley Road has been closed northbound from Whitgift Centre to St Michael’s Road.Transport for London has diverted its 60, 407 and 455 routes.