In Radda, witnesses say the families of the dead held a protest in front of local city council demanding an investigation and holding the government responsible for the killings. The demonstration came after the families brought their beloved ones and lined them up inside a mosque in the city, holding up their burial in protest, according to witnesses.
Later on the day, the families agreed to sit with tribal leaders who offered mediation.
Khaled al-Raddai, a witness who was inside the mosque, told The Associated Press that some of the bodies had torn limbs and were wrapped in blooded sheets. He said only 11 bodies were inside the mosque.
The city, a stronghold of al-Qaida militants, witnessed deadly clashes early last year between armed tribesmen backed by the military and al-Qaida gunmen they tried to drive out of the city.
On Thursday, a Yemeni military official said initial information indicated the drone mistook the motorcade for an al-Qaida convoy. He said tribesmen known to the villagers were among the dead.
While the U.S. acknowledges its drone program in Yemen, it does not usually talk about individual strikes.
If further investigations determine that the victims were all civilians, the attack could fuel an outburst of anger against the United States and the government in Sanaa as well as a Yemeni public already opposed to the U.S. drone strikes.
Civilian deaths have bred resentment on a local level, sometimes undermining U.S. efforts to turn the public against the militants. The backlash in Yemen is still not as large as in Pakistan, where there is heavy pressure on the government to force limits on strikes but public calls for a halt to strikes are starting to emerge.
In October, two U.N. human rights investigators called for more transparency from the United States and other countries about their drone programs, saying their secrecy is the biggest obstacle to determining the civilian toll of such strikes.
The missile attacks in Yemen are part of a joint U.S.-Yemeni campaign against al-Qaida in the Arabian Peninsula, which Washington has called the most dangerous branch of the global terrorist network.
Thursday's drone strike is the second since a massive car bombing and coordinated assault on Yemen's military headquarters killed 56 people, including foreigners. Al-Qaida claimed responsibility for the attack, saying it was retaliation for U.S. drone strikes that have killed dozens of the group's leaders.