The incident has taken place in Waziro area of Khogyani district which is located in south of the province.
The workers were busy collecting peanuts in the mountains when they have been targeted.
The police chief of Khogyani district Fawad Khan said at least 25 dead bodies have been taken to a nearby hospital so far.
He added that all of the victims were civilians.
However, sources said that the number of casualties may increase.
Meanwhile, the spokesman of U.S. forces in Afghanistan Colonel Sonny Leggett said that the U.S. forces have conducted “a precision strike against Da’esh terrorists in Nangarhar early this morning”.
“We are aware of allegations of the death of non-combatants and are working with local officials to determine the facts to ensure this is not a ploy to deflect attention from the civilians murdered by the Taliban at a hospital in Zabul earlier today,” Mr. Leggett added.
Nangarhar is among the volatile provinces in east of Afghanistan where both Taliban and Daesh insurgent groups are actively operating in a number of its districts including Khogyani.
Earlier this month, Afghan Special Forces conducted a night operation in Jalalabad city of Nangarhar province and killed four brothers during the raid.
The head of Afghan intelligence agency Mohammad Masoom Stanekzai resigned as a result of the incident and his resignation was accepted by President Ashraf Ghani.