Witnesses say most of the dead are civilians killed in the crossfire of intense Mogadishu street battles.
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The clashes were sparked by an Ethiopian military offensive Thursday against the insurgents. Witnesses say a helicopter has fired missiles on a suspected insurgent stronghold in the northern part of the city.
The fighting shatters a cease-fire reached last week between Ethiopian forces that back the Somali interim government and insurgents associated with the powerful Hawiye clan. The truce halted a week of violence that left at least 36 people dead, including 11 who died when insurgents shot down a cargo plane.
The Ethiopians helped Somalia's government push a rival Islamist movement from power in Mogadishu and other cities in December.
Since then, the government has had trouble containing insurgent violence in the capital. The insurgents are believed to be a mix of Islamists and clan members opposed to government authority.
Some information for this report was provided by AFP, AP and Reuters.