At least 10 people were killed on Wednesday by a blast in a predominantly Shiite area of north-eastern Baghdad, security sources and witnesses said.
A suicide bomber driving a car packed with explosives blew himself up near a checkpoint in the area of al-Shaab, also injuring more than 27 people, the sources added.
Ambulances rushed to the scene to bring the injured to nearby hospitals as Iraqi security forces were deployed in the area.
The Islamic State extremist militia claimed responsibility for the attack in a statement circulated by its supporters on social media. The statement could not be independently verified by dpa.
Islamic State regards Shiite Muslims as heretics.
Wednesday's attack is part of a series of similar assaults that have hit the Iraqi capital recently.
On Tuesday, about 13 people died and another 20 others were injured when a car bomb exploded at a fruit and vegetable market in Baghdad's northern al-Husseiniya district.
Last week, Prime Minister Haider al-Abadi accepted the resignation of interior minister Mohammed al-Ghabban and sacked the city's head of security operations, Abdul Amir al-Shammari.
At least 292 people were killed in the early hours of July 3 when a car bomb went off in Baghdad's central district of Karada as people shopped for Eid al-Adha, the celebration marking the end of the Islamic holy month of Ramadan. Many of the victims were charred beyond recognition.