People have fled their homes in droves following the latest clashes in Rakhine state, which was rocked by Buddhist-Muslim violence in June that split
communities and left tens of thousands of mainly Muslim Rohingya in camps.
More than 150 people have now been killed in the state since June, according to the authorities, who have imposed emergency rule in the face of continued explosive tension in the region.
"Twenty-five men and 31 women have been killed in four townships and 2,000 houses were burnt," Rakhine state spokesman Win Myaing told AFP while an official in Yangon who requested anonymity said the toll could be as high as 67.
Myanmar's 800,000 Rohingya are seen as illegal immigrants from neighbouring Bangladesh by the government and many Burmese -- who call them "Bengalis".
The latest violence, which prompted Myanmar's main Islamic organisations to cancel celebrations for the four-day Eid al-Adha holiday that began Friday, is seen as serious challenge to the government as the nation emerges from decades of military rule.
Washington joined the United Nations to swiftly condemn the violence with US State Department spokeswoman Victoria Nuland on Thursday urging both sides "to exercise restraint and immediately halt all attacks".
The bloodshed in Rakhine has cast a shadow over widely-praised reforms by President Thein Sein, including the release of hundreds of political prisoners and the election of opposition leader Aung San Suu Kyi to parliament.
State media on Friday took the rare step of acknowledging the damage resurgent violence in Rakhine is causing to the nation's image at a pivotal moment in its transition from authoritarian rule.
The violence comes as the "international community is watching", an editorial in state mouthpiece New Light of Myanmar, signed by the president's office, said -- putting the death toll from the recent unrest at 12.
Details of the situation in Rakhine were scant early Friday but security has been stepped up in affected areas, including around the state's main tourist attraction of Mrauk U and Kyaukpyu, where a major pipeline to transport Myanmar gas to China begins.
AFP journalists visiting Rakhine in recent days saw thousands of Muslim Rohingya trapped behind barbed wire and armed guards in a ghetto in the centre of the capital.
Tens of thousands more are housed in camps beyond the city limits as segregation between the two communities intensifies.
There have been a number of anti-Muslim protests by Buddhists recently.
The stateless Rohingya, speaking a Bengali dialect similar to one in neighbouring Bangladesh, have long been considered by the United Nations as one of the most persecuted minorities on the planet.
Bangladesh on Thursday mobilised extra patrols along its river border with Myanmar amid reports of dozens of boats carrying Rohingya Muslim refugees fleeing the clashes.
Bangladesh drew criticism from the UN after it turned back boatloads of Rohingya, mainly women and children, after the June violence. But the nation said it would not accept any new refugees because it was already dealing with an estimated 300,000 Rohingya.