The incident occurred in Akbar Shah area of Bannu district bordering North Waziristan Agency.
The armed men of a rival group forcefully entered a house and opened indiscriminate firing.
Police said seven persons of the same family, including a man, his wife and their minor child, were killed on the spot.
In the exchange of fire, two brothers from the rival group were also killed.
The bodies were taken to hospital for autopsy.