Police said the blast ripped through the mosque near Meena Bazaar area in Peshawar when the people had gathered for noon prayers.
The blast also caused damage to Jamia Chishtia mosque. The walls of the mosque and nearby houses were damaged due to the blast. The bazaar was immediately shutdown after the blast.
TV footage showed destruction at the mosque. Police said the device was hidden in a wall near the site of the prayer leader, News Pakistan reported.
People were going to the mosque for prayers when the blast took place, witnesses said. Reports suggest that the prayers leader was also killed in the attack.
Rescue teams and police arrived at the site. The bomb disposal squad before clearing the site said that initial investigations had suggested explosive materials weighing between three to four kilograms was detonated through a remote controlled device.
An official said that around 30 injured were brought to the Lady Reading hospital and several were registered in critical condition. At least four of those injured were children.
No group has yet claimed responsibility of the attack.
People staged demonstration and blamed the government and the police to check terrorism.
Khyber-Pakhtunkhwa Chief Minister Ameer Haider Khan Hoti condemned the attack and ordered for the injured to be given free treatment.