Suspected drug hitmen, who arrived at the high school party in a sports untility vehicle, went on a rampage in a house in the city across the border from El Paso, Texas on Sunday, Jan 31.
The dead bodies of the children lay outside on the street in pools of blood, while the walls of the house was painted red with blood, say media reports describing the blood bath.
"We have two lines of investigation and one of them is linked to drug trafficking," Patricia Gonzalez, attorney general for Chihuahua state that includes Ciudad Juarez, said at a news conference.
Gonzalez informed that three adults and 11 minors were killed in the attack while fourteen others were wounded. Two of those who were injured are reportedly in critical condition.
All the victims were between 15 and 20 years old, the army added.
Parties in Chihuahua state have been targeted by drug hitmen over the past two years. The assailants are looking to kill their rivals.
The surge in violence has led to the city being known as one of the world's deadliest cities.