The incident happened at a car parking near a park, which is located in front of a pagoda, in Lashio town of northern Shan state at around 11:45 a.m. local time (0515 GMT), the report said on Thursday.
The bomb attack on the eve of the traditional Thingyan water festival was made with a handmade explosive device, it added.
The victims were pilgrims to the pagoda, and the injured included a three-year-old child, it said, adding that the injured were sent to the Lashio hospital for medical treatment, Xinhua news agency reported.
Another bomb blast also occurred in Thaketa township in Yangon region on Thursday, and no causalities were reported in the blast, a local police officer said.
Operations are underway to locate the perpetrators.
(IANS)