pave the way for fresh elections.
The new charter aims to replace the constitution passed under Islamist President Mohammed Morsi months before he was ousted by the army.
The military wants a strong Yes vote to endorse Mr Morsi's removal.
His Muslim Brotherhood, now designated a terrorist group, is boycotting the vote. Five people have died in clashes.
One person was killed during an anti-
referendum protest in Bani Suef, south of Cairo, the governor there told the BBC.
Three people were killed in clashes with security forces in the Upper Egypt city of Sohag while a further death was reported in Nahia, in the Giza district of Cairo.
Shortly before voting began, an explosion took place near a court building in Cairo's Imbaba district, although no casualties were reported.
A huge security operation is being mounted for the two days of voting. Some 160,000 soldiers and more than
200,000 policemen are being deployed nationwide.
Army chief Gen Abdel Fattah al-Sisi visited one polling station in north Cairo, telling guards there: "Work hard.
We need the referendum to be completely secured."
The BBC's Orla Guerin in Cairo says this has been a distorted campaign, with endorsements for the new
constitution flooding state-run and private TV and radio.
However, spotting any posters from the No campaign is a lot harder and people have been arrested for putting them up, our correspondent says.
Democratic or not, she says, the referendum is seen by many as more than a ballot on a new constitution - it is widely viewed as a verdict on the removal of Mr Morsi.
State-run media were on Tuesday describing the vote as a "democratic ceremony" - a term widely used during the Hosni Mubarak era but not heard since he was ousted in
the revolution of January 2011.
'Every vote'
One voter in Cairo, Salah Mustafa, told the BBC: "Compared with the document that we had last year,
which was a really horrible constitution, there's a lot of
rights."
Army chief Gen Sisi visited one polling station in Cairo early on Tuesday vasoters show off ballot ink in Cairo Security forces were out in numbers in Alexandria But Mohammed Soudan, a spokesman for the Brotherhood's political wing, said most people were boycotting the vote, adding: "This is a message that we are not recognising this kind of new power."
Interim Prime Minister Hazem Beblawi has called the referendum the "most critical moment" for Egypt.
Interim President Adly Mansour said after voting: "The people must prove to dark terrorism that they fear
nothing."
The new constitution was drafted by a 50-member committee that included only two representatives of
Islamist parties.
The authorities maintain that it is a crucial step towards stability.
Under the new constitution:
The president may serve two four-year terms and can be impeached by parliament Islam remains the state religion - but freedom of belief
is absolute, giving some protection to minorities The state guarantees "equality between men and
women" Parties may not be formed based on "religion, race, gender or geography" Military to appoint defence minister for next eight
years Critics say the new constitution favours the army at the expense of the people, and fails to deliver on the 2011 revolution.
A Yes vote could pave the way for fresh elections and it now seems certain that Gen Sisi, who backed Mr Morsi's removal following mass protests, will run for president.
Turnout 'key' The constitution is expected to attract a resounding Yes
vote, but the turnout is key, analysts say.
The last charter, passed just over a year ago, was approved by 63.8%, but only 32.9% of the population
voted.
Mohammed Morsi was Egypt's first democratically elected president but was deposed by the military last July.
He is being held in jail in Alexandria, facing several criminal charges relating to his time in office - which he says are politically motivated.
Many of the Muslim Brotherhood's senior leaders and the movement's supporters are also behind bars.
More than 1,000 people have died in violence since Mr Morsi's overthrow.
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