Houthis have carried out several attacks with armed drones and ballistic missiles against al-Anad military base, said Yemeni southern forces spokesman Mohamed al-Naqeeb.
Naqeeb said between 30 and 40 soldiers were killed and at least 60 were injured, adding that the death toll could still rise as rescuers were still clearing the scene.
Southern forces are part of the Saudi-led coalition.
Two medical sources said several bodies had arrived at the main hospital in Lahj province along with 16 other injured. It was unclear if there were civilians among the victims.
Residents said several explosions were heard in the Al-Anad area, located about 70 km north of the southern port city of Aden.
Several other residents of the disputed central city of Taiz said they heard ballistic missiles fired from launchers located in the eastern suburbs of the city, dominated by Houthi.
The war began in 2014 when Houthis invaded Sanaa and ousted the government of Abd-Rabbu Mansour Hadi. A coalition led by Saudi Arabia and the United Arab Emirates intervened in March 2015 to restore Hadi to power, but the ensuing conflict, now stalled, has killed tens of thousands and caused the world’s worst humanitarian crisis.
The attacks came at a time when peace talks between the Saudi coalition and the Houthis, with the support of the United Nations and the United States, have stalled after the two sides failed to reach a compromise agreement. .
Talks focus on steps to lift a blockade on Houthi ports and Sanaa airport in exchange for a promise from the group lined up in Iran for truce talks.