The US drone carried out the aerial attack in the town of Azan in Shabwa Province early in the morning on Wednesday.
Dozens of people have fled the area since the attack took place, the sources added.
Recently, there has been a rise in the US assassination drone strikes in Yemen.
Washington has been using its assassination drones in Pakistan, Afghanistan, Yemen and Somalia and claims that it is targeting terrorists, but civilians have been killed in the assaults.
The aerial attacks were initiated by former US President George W. Bush but have been escalated under President Barack Obama.