Among the deceased were 13 children and six women. The attack, said to be the deadliest insurgent attack in the last six months happened in Khoshamand district of Paktika, a bordering state with Pakistan.
President Hamid Karzai, condemned the attack and called it "inhumane and un-Islamic".
Off late there has been a spurge in attacks carried out by insurgents in Afghanistan and unarmed civilians especially children. According to a data compiled by the UN, nearly 2400 civilians were killed and more than 3800 injured in the first ten months of 2010.
Earlier in Jan 2011, a suicide bomber killed 17 people, inside a public bathhouse in southern Kandahar.