Police urged the militants in Nasirpur, northeast of the capital Dhaka, to give themselves up on Wednesday, but instead they detonated the grenade.
“Up to eight militants, including a female, were killed,” Monirul Islam, the chief of police for counter-terrorism and transnational crime, told reporters.
On Monday, Bangladesh army commandos killed four Islamist militants in the northeastern city of Sylhet during a raid on a building where they were holed up.
On Saturday, six people, including two police, were killed and more than 40 wounded in two bomb blasts near the militant hideout in the Sylhet building.