Melbourne girl Zynab Al Harbiya killed in Islamic State terrorist blast at Baghdad ice-cream parlour - ABC News (Australian Broadcasting Corporation)

A "loving and fun" 12-year-old Melbourne girl killed in an Islamic State (IS) bomb blast at a Baghdad ice-cream parlour had begged her family to take her there after a long day of Ramadan fasting.

Reuters news service reported two car bombs were used to kill more than 20 people and wound dozens of others in the Iraqi capital, as people broke their holy month fasts.

Foreign Minister Julie Bishop confirmed Zynab Al Harbiya, from Thomastown in Melbourne's north, had been killed in the "vicious" attack.

Zynab was in Iraq with her parents and two siblings to visit her sick grandfather, who had recently returned to Iraq after living in Australia.

Zynab's cousin, Layla Al Saabary, said the family had moved to Australia to escape persecution during Saddam Hussein's reign two decades ago.

She said the girl and her family had only been in Baghdad for a few days.

"She had just broken her fast for the holy month of Ramadan and she insisted she wanted to get ice cream," Ms Al Saabary told the ABC.

"Her young uncles, they were injured as well, and they decided they should take her to get ice cream because she was craving it, because she had fasted the whole day, and it's very hot there."

Family friend Sama Hadad said while they were at the ice cream parlour it was targeted by a suicide car bomb.

"Unfortunately the ice-cream parlour was targeted by a suicide car bomb, and her uncles were injured and she was fatally wounded and did not make it," she said.

Dr Hadad described Zynab as "loving and fun".

Ms Saabary said her cousin was like any 12-year-old and "just wanted to have fun".

Zynab has been buried in Iraq.