At least two bombs went off at the Big C supercentre in the Muang district.
Police said a pickup truck was involved in the attack and more than 40 were injured.
Captain Preecha Prachumchai of Pattani provincial police said: "The first bomb was small and no one was hurt but the second bomb was huge.
"Currently around 40 people have been wounded: one is in serious condition."
The first bomb exploded inside the hypermart and as people were leaving the building, another was detonated.
Horror pictures from the scene show the blackened shell of the shopping mall.
And there is a huge plume of black smoke rising above the area.
The Foreign Office advises Brits against all but essential travel to the province of Pattani.
Regional police commander Ronnasilp Phusara said the truck was parked in front of the shopping centre.
A bomb went off inside the centre and once police officers arrived at the scene, the truck exploded.
Ronnasilp said: “It was a car bomb attack, but we do not have much detail at this point."
This comes as Thailand was revealed as a popular Brit holiday destination.
Nearby Pattaya is a favourite with Brits and shocking pics emerged of a police crackdown on sex workers.
The southern border province of Pattani has been rocked by waves of secessionist violence since early 2004.
Last month, the Buddhist government rejected a conditional offer for peace talks by one of the main insurgent groups, the Islamic Barisan Revolusi Nasional.
The conflict that has claimed more than 6,800 lives.
Technically martial law still exists in Pattani since a military coup in 2014.
General Prayuth Chan-o-cha has wide powers to enforce law and order which has led to violent demonstrations and protests.
The Foreign Office's advice for Brits in the area is to "avoid any protests, political gatherings, demonstrations or marches".
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