This is the bloodiest attack this year in the country where the army are fighting against the Islamic State (IS) terrorists, Xinhua reported.
The busy commercial district in southern Baghdad was hit by a car bomb at about 1:00 a.m. local time when a suicide bomber detonated his explosive-laden pickup truck outside a shopping centre.
The three-floor building was completely destroyed, when lots of people were in it. Many of the victims are women and children, the source said.
The powerful blast set fire to the shopping centre and four nearby buildings while many shops and stalls were charred and destroyed, along with destroying dozens of civilian vehicles at the scene, the source added.
Dozens of rescue workers, firefighters and civilians were removing debris and burned wreckage from dawn to the evening, looking for survivors and dead bodies.
The attack happened when many families and young people were in the crowded thoroughfare where many shoppers were preparing their families for Eid al-Fitr scheduled to start on Tuesday, which marks the end of the holy month of Ramadan.
Meanwhile, another car bomb went off in a market in northeastern Baghdad, leaving one killed and five wounded, the source added.
The death toll could rise as many wounded are in critical condition.