BBC correspondents described scenes of confusion, anger and fear at the al-Shaab district of Baghdad after the air attack on Wednesday morning.
It was a scene of confusion as emergency services tried to rush to the scene
The BBC's Rageh Omaar said: "On either side of the road in the main bit of al-Shaab district I saw several destroyed houses and apartment blocks.
"I saw human remains, bits of severed hands, bits of skull.
"Al-Shaab is a residential district. I saw people in apartment blocks throwing out their belongings attempting to leave.
"It was a scene of confusion as emergency services tried to rush to the scene."
Our correspondents were unable to find an obvious military target in the area.
Reporter Andrew Gilligan said:
"The nearest military building, civil defence headquarters, is I have to say at least a quarter of a mile away.
An enraged crowd of several hundred waved the shoes and clothes of the victims at us, shouting 'Down with Bush, long live Saddam'
"What seemed to be two missiles have landed in a busy shopping parade in the suburb of al-Shaab - we could see the craters.
"Shops and businesses either side of the road were burnt out and blackened with their stock and fittings thrown dozens of feet into the air.
"An enraged crowd of several hundred waved the shoes and clothes of the victims at us, shouting 'Down with Bush, long live Saddam'. "
The BBC's Paul Wood was also there.
"There are four or five cars which have been completely flattened by the blast.
"According to local people, there was a family in one of the cars when what they believe were two missiles came in and struck.
"This is a row of shops and a row of workshops. People were working on repairing cars at the time.
"Residents insisted there was no military target nearby and indeed, we couldn't see any."
The movements of those reporting from Baghdad are restricted and their reports are monitored by the Iraqi authorities.