The unmanned spy plane fired two missiles at the compound in Tappi area, 10 km from Miranshah, the main town in North Waziristan Agency, officials were quoted as saying by television news channels.
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The compound was destroyed in the attack that was carried out at around 7 am. Several injured persons were taken to a nearby hospital.
Residents of Tappi said militants announced over a mosque's loudspeaker that funeral prayers for the dead would be held on Wednesday afternoon. The local residents said the men who were killed did not belong to the area.
Intelligence officials told Express News channel that there was a possibility that the dead men were from Punjab province. Other reports said foreign fighters from Central Asia were among the dead.
This was the fifth drone strike of the year, and came days after President Barack Obama acknowledged for the first time that the US was using drones to target militants in Pakistan's tribal belt.
US officials have described Pakistan's tribal belt, especially North Waziristan, as a safe haven for Taliban and Al Qaeda elements fighting in Afghanistan.
The missile strikes fuel widespread anti-American sentiments, which are running high since a cross-border North Atlantic Treaty Organisation air strike killed 24 Pakistani soldiers in November.
Following the air strike, Pakistan closed all NATO supply routes and forced the US to vacate Shamsi airbase, reportedly a hub for the Central Investigation Agency-operated drones.
