UNHCR said it was "deeply shocked and saddened" by the attack and the reported casualties.
Global rights groups have accused the Saudi-led coalition of bombing civilian gatherings, markets, hospitals, and residential areas across Yemen since the beginning of its campaign against Houthi rebels in 2015.
The bombing was part of an air campaign being carried out by the Saudi-led coalition since March 2015. The coalition is allied to ousted Yemeni President Abd Rabbu Mansour Hadi, who fled to Saudi Arabia when the Houthis took power in Yemen.
"[Children] are facing threats from all sides, they've got the threat of airstrikes from above, which are continuous - just in the past few weeks we've seen [bombs] landing on marketplaces where civilians have been killed", Caroline Anning, senior conflict and humanitarian advocacy adviser at Save the Children, said to the Guardian.
"It also illustrates the difficulties in the delivery of humanitarian protection and assistance in Yemen..."
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Saudi Foreign Minister Adel al-Jubeir told the Guardian that those figures were "vastly exaggerated".
The war has been mired in stalemate for most of the last two years, with more than 10,000 civilians killed and several million left homeless.
Yemen's internationally recognised government confirmed that around 20 people were killed in the al-Atera village.
"If there is no accountability, if groups that are fighting think they can use their political influence - and if they're powerful enough and rich enough, then they can get away with killing and injuring children, or bombing schools and hospitals - it sets a really unsafe precedent not just for Yemen but for conflicts around the world", Anning said.
The UNHCR statement said more than half a million civilians, 27 per cent of Yemen's internally displaced people (IDPs), originate from the governeorate of Taez.
A total of 1,802 people have been killed by a cholera outbreak in war-torn Yemen since late April, the World Health Organization (WHO) said Tuesday.