Pneumonic plague is rare and more vicious than the commonly-known bubonic strain as it gives antibiotics little time to act and can kill within 24 hours.
"Twelve cases of pneumonic plague have been identified," out of which eight people have died in two days, Maherisoa Ratsitorahina, the health ministry's chief epidemiologist, told AFP.
He said the disease was under control and was confined to Antsahatsihanarina village, which is less than 20 kilometres (12 miles) from the city of Moramanga in the east of the island.
Pneumonic plague can be spread from person to person through coughing.
The World Health Organization warned early this year that the number of plague cases has steadily increased over the last three years, making Madagascar the world's most affected country.
In 2013, the country registered 86 cases and 39 deaths while between September last year to February, a total of 263 people were infected cases and at least 71 killed.