One soldier was killed and 12 wounded at a military base inside the town of Sioun, when a suicide bomber detonated an explosive device attached to his body, the Yemeni daily Al-Ayyam reported.
No group has yet claimed responsibility for the attack, although local authorities have already pointed the finger at Al-Qa’ida.
The explosion caused a powerful shock wave, damaging 366 houses in the surrounding area.
"The shock wave has dislocated doors, cracked roofs and broken the windows in the surrounding area," Sa’id Mah’daqa, a local resident, told Al-Ayyam.
Mah’daqa and a group of residents are demanding the government compensate them for damage caused to their homes.
Sioun is located in the Hadrmout District, where several terror attacks have occurred in the last few years. The attacks were launched against Yemeni soldiers and civilian installations. Foreign tourists are warned not the travel in the region, following a recent spate of kidnappings.