The bomber entered the Imambargah, used for religious services, in the remote Chalgari area of Kachhi district at the time of sunset prayer and exploded his explosive-laden vest.
"At least 10 people were killed and 12 others were wounded after a suicide bomber blew himself up at the shrine," Balochistan home minister Sarfaraz Bugti said.
The explosion was heard in a wide area and shattered windows in the nearby vicinity.
No one immediately claimed responsibility for the attack but Sunni extremist groups often target minority Shias.
It was the first major attack that targeted the minority Shia Muslims in the holy month of Moharram when they organise special prayers and take out processions to observe the martyrdom of Hussain Ibne Ali, the grandson of the Prophet.
Balochistan has been rocked due to violence by extremists and ethnic Baoch militants.
Earlier this week, at least 10 people were killed in an explosion in a passenger bus in the provincial capital Quetta.
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