The landslide took place at 5:51 am (2151 GMT Sunday) in Zhenxiong County, state news agency Xinhua reported, citing local authorities.
State broadcaster CCTV said around 18 households were buried in the landslide, and that more than 200 people were "urgently evacuated" from the area.
Authorities have launched an emergency response involving over 200 rescue workers as well as dozens of fire engines and other equipment, according to CCTV.
Footage shared on social media by a local broadcaster showed emergency workers in orange jumpsuits and helmets picking through piles of collapsed masonry amid towering mountains dusted with snow.
Efforts to establish what happened are underway, Xinhua reported.
Landslides are common in Yunnan, a remote region of China where steep mountain ranges butt against the Himalayan plateau.
China has experienced a string of natural disasters in recent months, some following extreme weather events.
Over 20 people died when heavy rains triggered a landslide near the northern city of Xi'an in August.
And in June, a landslide in southwestern Sichuan province killed 19 people.
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