At least 34 people were killed and 72 were wounded on Wednesday when a car bomb went off near a restaurant in the northwestern Baghdad district of Shula, police and hospital officials said.
The blast in the mostly Shi'ite district is a reminder that Sunni insurgents remain capable of striking despite the improvement in security in Baghdad and much of the rest of Iraq over the past two years.
Nearly 250 people were killed in major bombings in Baghdad alone last month.
US forces are scheduled to leave Iraqi cities by June 30. The move will test the capabilities of Iraq's nascent security forces.