The attack took place during the night, when about 30 Muslim rebels burst into the homes of government-backed defence volunteers, killing a local administrative official and his daughter, police said.
Six others were shot and wounded in the attack in Yala, a predominantly Muslim province bordering Malaysia.
The attack lasted about 40 minutes and four soldiers racing to the scene were injured when a bomb was detonated under their vehicle, about 3km away.
The attack bore the hallmarks of ethnic Malay Muslim separatists at the heart of seven years of violence in Yala, Pattani and Narathiwat provinces that has killed at least 4,600 people and wounded more than 9,000.
Shootings and follow-up bombings targeting security forces are a simple, but effective, tactic used regularly by militants thought to be behind most of the unrest, for which no credible group has claimed responsibility.
The region, where Buddhists are minority and Thai is spoken as a second language, was an independent sultanate until annexed by Thailand in 1909 as part of a treaty with Britain. Separatist tensions have simmered ever since. — Reuters
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