An Australian girl has been killed in a terror attack in Baghdad.

12-year-old Zaynb Al Harbeya was at an ice-cream parlour in the Iraqi capital, when a car bomb exploded, killing 17 people and wounding 32 others.

Zaynb's family has told Sky News she had been visiting her sick grandfather, with her parents.

They say the family had been fasting for Ramadan, and had just broken their fast. Zaynb wanted to go for ice cream, and had gone to pay when the bomb exploded.

She was in year seven at Sirius College, in Broadmeadows.

Her funeral will be held today.