Children among scores killed in country’s deadliest suicide bombing.
Another woman wounded during the battle and was taken to a medical facility for treatment.
The bodies of fighters and weapons were also retrieved, according to the US military.
The incident comes after the United Nations reported around 300 civilians have been killed in operations by Afghan and US-led troops targeted at Taliban fighters.
Civilian casualties have incited resentment and demonstrations against US and NATO forces in Afghanistan.
Hamid Karzai, Afghanistan‘s president, has repeatedly warned US-led forces operating in the country that his government risks losing support in the country because of the high number of civilian casualties.
A provincial police official said on Monday that four Afghan policemen and two others had been wounded by Taliban fighters the previous night in an attack on a police checkpoint in the city of Ghazni, southwest of Kabul.
Afghanistan has seen a high rise in violence in the last two years with as many as 7,000 people dead during the period of clashes.