The Karen National Union (KNU), the ethnic armed group that controls the southeastern region, said fighter jets attacked Day Pu Noe village at around 8 p.m., forcing villagers to flee.
A spokesperson for the Karen Peace Support Network, a civil society group working in the area, said there were reports two people had been killed and two wounded, but communication was difficult in the remote region and more casualties were feared.
Earlier on Saturday, the KNU said it overran an army base, killing 10 soldiers including a lieutenant-colonel, as the junta celebrated its annual Armed Forces Day with a parade in the capital, Naypyitaw.A spokesman for the military junta did not answer phone calls seeking comment.