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Another man was killed in barrel bomb raids elsewhere in the southern province, the Britain-based group said.
A video from Dael showed men carrying the remains of bodies after the attack.
"This is all that remains of the family," one man says.
"Where is Arab pride in the holy month of Ramadan? This is what is happening to children."
The Observatory said the children were aged 13, 12, 11, 10, eight and two.
Syrian regime forces control Daraa city, but the province is divided between rebel and government control.
Elsewhere, the Observatory said 15 Syrian Kurdish fighters had been killed since Friday in clashes with the jihadist Islamic State (IS) group in the Zur Maghar area of Aleppo province in north Syria.
The IS seized Zur Maghar and nearby Bayada on Friday as it continues to battle rebel forces elsewhere in northern Syria.
Alongside that front, regime troops have made new advances on the outskirts of eastern Aleppo.
The city, once Syria's economic hub, has been divided between rebel control in the east and government control in the west since shortly after fighting erupted there in summer 2012.
But regime forces have in recent days begun to encircle the eastern outskirts of the city, seizing the Sheikh Najjar industrial sector to the northeast and threatening rebel supply routes.
In addition to battling the regime, rebels have been fighting the IS, previously known as the Islamic State of Iraq and the Levant, since January.
The group has become infamous for abuses against civilians and opposition forces, and last week announced the establishment of an Islamic "caliphate" -- a state straddling the border between Syria and Iraq.
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A video from Dael showed men carrying the remains of bodies after the attack.
"This is all that remains of the family," one man says.
"Where is Arab pride in the holy month of Ramadan? This is what is happening to children."
The Observatory said the children were aged 13, 12, 11, 10, eight and two.
Syrian regime forces control Daraa city, but the province is divided between rebel and government control.
Elsewhere, the Observatory said 15 Syrian Kurdish fighters had been killed since Friday in clashes with the jihadist Islamic State (IS) group in the Zur Maghar area of Aleppo province in north Syria.
The IS seized Zur Maghar and nearby Bayada on Friday as it continues to battle rebel forces elsewhere in northern Syria.
Alongside that front, regime troops have made new advances on the outskirts of eastern Aleppo.
The city, once Syria's economic hub, has been divided between rebel control in the east and government control in the west since shortly after fighting erupted there in summer 2012.
But regime forces have in recent days begun to encircle the eastern outskirts of the city, seizing the Sheikh Najjar industrial sector to the northeast and threatening rebel supply routes.
In addition to battling the regime, rebels have been fighting the IS, previously known as the Islamic State of Iraq and the Levant, since January.
The group has become infamous for abuses against civilians and opposition forces, and last week announced the establishment of an Islamic "caliphate" -- a state straddling the border between Syria and Iraq.
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