Initial reports said two motorcycle-riding men hurled a fragmentation grenade at the detachment while the victims were watching television. The outpost is near the transport terminal in downtown Pagadian.
Col. Hilario Atendido, spokesman of the Armed Forces Southern Command, said five of those killed in the attack were SPO3 Benjamin Tumaktol, security guards John Prancillo and Jun Bajao, Emmanuel Villamor and a still unidentified woman.
Two other persons, identified as Marlon Cariaga and Ernesto Villamor, were wounded.
Intelligence reports said the MILF has dispatched a bomb squad to carry out attacks.
"We are looking into whether this is really the handiwork of MILF rebels," Atendido said.
Pagadian has been the scene of similar bomb attacks in recent months that have largely been blamed on the separatist MILF. Roel Pareño, AFP