The second car bomb attack in a week wounded 30 others and damaged several shops. It comes as US-backed Iraqi forces are closing in on the Daesh-held western half of Mosul.
At least seven people were killed and 30 others wounded when a car bomb ripped through a commercial street in south-western Baghdad late on Tuesday, police said.
The explosion occurred in the neighborhood of Amirya. It was the second car bomb attack in Baghdad in a week.
Like last week's suicide car bomb in Sadr City, which killed 15 people, there is no word on who carried out Tuesday's attack.
The explosion comes at a time when US-backed Iraqi forces are closing in on the Daesh-held western half of Mosul. They are preparing to storm Mosul airport and a nearby military base on its southern outskirts after liberating Abu Saif village from Daesh on Monday.
Iraqi forces on Sunday launched a ground offensive to take western Mosul where Daesh militants are under siege along with an estimated 650,000 civilians.
The operation is part of an assault that the Iraqi government started on October 17 to drive Daesh out of Mosul, Iraq's second largest city, that fell to the group in 2014.