The militants chopped up the bodies of the victims on a football ground in the Cabo Delgado province. It is believed the women in Ninjaba village were all kidnapped.
Several people were also beheaded in another village, according to state media.
Bernardino Rafael, commander-general of Mozambique’s police, said during a press conference: “They burned the houses then went after the population who had fled to the woods and started with their macabre actions.”
According to the BBC, the gunmen were heard chanting “Allah Akbar” (‘God is Greatest’ in English).
They also fired shots and set homes on fire when they raised the village on Friday night.
Two people were beheaded in the village and several women were abducted.
A separate group of militants attacked the Muatide village where more than 50 people were beheaded.
The victims were taken to a local football pitch where they were brutally killed and dismembered over the weekend.
Counter-terrorism and organised crime expert David Otto said: “State forces and suspected spies have been captured and beheaded by the jihadist group to send a warning message.
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Last week, around 20 men and teenagers from the Muidumbe district were also beheaded, with dismembered body parts of at least five adults and 15 boys found.
An officer said: “Police learnt of the massacre committed by the insurgents through reports of people who found corpses in the woods.
“It was possible to count 20 bodies spread over an area of about 500 metres.
“These were young people who were at an initiation rite ceremony accompanied by their advisers.”
These latest attacks are part of a series of gruesome attacks carried out in the gas-rich province since 2017.
More than 2,000 people have been killed while 430,000 have been left homeless in the conflict.
This latest attack comes after Washington warned ISIS is taking over swathes of Africa.
A report from West Point – the US officer training academy – said: “ISIS in west Africa is engaging in operations that are increasingly audacious, staggeringly brutal and worryingly akin to what ISIL, as it was known at the time, was doing early 2014.
“Its supporters have been engaging in attacks that have exceeded the scale and complexity of those being deployed by their counterparts in Syria and Iraq for at least a year now.”