Bodies are scattered around what is believed to be the wreckage of the jet near the village of Grabovo, which is under the control of separatist rebels.
Flight MH17 had been due to enter Russian airspace when contact was lost.
Ukraine’s president called the loss of the plane an “act of terrorism” as the rebels denied shooting it down.
The separatists are believed to have shot down two Ukrainian military planes over the region in recent days.
There is no official closure of Ukraine airspace but Germany’s Lufthansa, Air France and Turkish Airlines are all now avoiding eastern Ukraine.
Meanwhile, mystery continues to surround the fate of Malaysia Airlines flight MH370 which disappeared en route from Kuala Lumpur to Beijing on March 8 with 239 people on board.
Malaysian Airplane Crashes In Russia With 295 People On Board