The violence began Wednesday after a customer and the Muslim owner of a shop had an argument, Voice of America reported.
The dispute turned violent when hundreds of Buddhists and Muslims arrived at the shop.
At least 10 were killed, including a Buddhist monk, and over 20 others were injured, Voice of America said.
A mosque and an Islamic school were also burned.
The violence was controlled after police imposed the nighttime curfew, but authorities said violence broke out again on Thursday.
The unrest is a result of tensions between Myanmar's Buddhists and the minority in the country, Muslims.