Activists cut up the bodies of the victims on a football pitch in Cabo Delgado province. It is believed that the women of Ninjaba village have all been kidnapped.
According to the BBC, the gunmen were heard chanting “Allah Akbar” (“God is the greatest” in English).
They also shot and set houses on fire when they lifted the village on Friday evening.
Two people were beheaded in the village and several women were abducted.
A separate group of militants attacked the village of Muatide where more than 50 people were beheaded.
The victims were taken to a local football field where they were brutally killed and dismembered over the weekend.
Counterterrorism and organized crime expert David Otto said: “State forces and suspected spies have been captured and beheaded by the jihadist group to send a warning message.
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Last week, around 20 men and adolescents from Muidumbe district were also beheaded, with dismembered body parts of at least five adults and 15 boys found.
An officer said: “The police learned of the massacre committed by the insurgents through reports of people who found dead bodies in the woods.
“It was possible to count 20 bodies spread over an area of approximately 500 meters.
“These were young people who attended an initiation rite ceremony accompanied by their counselors.”
These latest attacks are part of a series of horrific attacks carried out in the gas-rich province since 2017.
More than 2,000 people have been killed and 430,000 are homeless in the conflict.
This latest attack comes after Washington warned that ISIS was invading swathes of Africa.
A report from West Point – the American Officer Training Academy – said: “ISIS in West Africa is embarking on increasingly daring, incredibly brutal and similar operations to what the EIIL, as it was called at the time, was doing in early 2014.
“His supporters have been engaged for at least a year in attacks that exceed the scale and complexity of those deployed by their counterparts in Syria and Iraq.”