Hashem Abedi, 22, the jihadi's brother, is on trial at the Old Bailey charged with mass murder for his part in making the bomb.
The 2016 suicide bombing at the Manchester Arena at an Ariana Grande concert left 22 dead, including children and teenagers, as well as 237 injured.
Salman Abedi, carrying the bomb in a rucksack, joined the parents and families picking up the mostly-young concertgoers in the foyer of the 21,000 capacity venue.
He detonated the explosive with such force that his head and upper torso were found in the neighbouring Victoria Station ticket hall, some distance from his other body parts in the foyer.
Duncan Penny QC, prosecuting, told the court: "Such was the ferocity of this explosion that Salman Abedi was dismembered in the process."
Describing the aftermath of the explosion as a scene of "destruction and chaos," he went on: "22 people - men, women, teenagers and a child - were killed, 28 people were seriously injured, 111 others were also hospitalised.
"In all, 237 were physically injured in addition to those killed, while a total of 670 people have since reported psychological trauma as a result of these events.
"The bomb which was detonated was self-evidently designed to kill and maim as many people as possible.
"It was packed with lethal shrapnel and it was detonated in the middle of a crowd in a very public area — the intention being to kill and to inflict maximum damage."
The court was shown a graphic illustration of the bomber's head and upper torso apparently some distance from the rest of his body.
Hashem Abedi sat impassive in the dock as the jury heard how his brother was "dismembered" by the explosion, taking 22 innocent victims with him.
With curly black hair and glasses and wearing a dark blue shirt and trousers, Abedi stared straight ahead as the prosecution outlined the case against him.
Accused of mass murder, he was flanked by three prison officers, facing the raised bench where trial judge Justice Jeremy Baker sat in the wood-panelled courtroom.
Yards away from the accused killer, loved ones of the Manchester Arena victims sat listening.
Abedi's family were originally from Libya, but settled in the UK, and at the time of the bombing, were living in a council house in Fallowfield, a studenty area of south Manchester.
By 2016, the boys' parents had returned to Libya, the eldest brother Ismail had moved out, and the two lived at home alone, the court heard.
The jury heard both brothers had shown signs of radicalisation, especially Salman.
But the prosecution said the defendant, two years younger than Salman, denied this and told police he had "no inkling" of his older brother speaking of "jihad" or his radicalisation in the run-up to the attack.
The trial continues.