The bomber struck as residents of Baghdad's western Eskan neighbourhood were preparing for Ashoura, which commemorates the 7th century death of Imam Hussein, the grandson of the Prophet Muhammad, a police officer said, adding that another 28 people were wounded.
A medical official confirmed the toll. Both officials spoke on condition of anonymity as they were not authorised to release information.
No one immediately claimed the attack. The Islamic State group and other Sunni extremists frequently target Iraq's Shiite majority, who they view as apostates deserving of death.
The attack came a day after a triple suicide bombing killed 11 Iraqi security forces and wounded 34 at a checkpoint north of Baghdad. The Islamic State group claimed the attack.
IS has suffered a series of setbacks in recent months, losing much of the territory it seized in the summer of 2014, but it has continued to carry out attacks targeting Shiites and security forces.
The extremists still control Mosul, Iraq's second largest city. Iraqi officials say they hope to launch an operation to retake the city by the end of the year.
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