They were inside a pandal or makeshift tent at the centre of the festivities when the attack began.
It was the first air strike on Pa Zi Gyi although the region, Sagaing, which is home to some of the fiercest resistance to military rule, has been subject to several such attacks.
Farmer Ye Naing also lost both his parents and his three-year-old daughter Hnin Yu Wai in the air strike.