The boys were herding cattle in Neelum Valley, near the Line of Control, the de facto border in Kashmir on Thursday when they hit a "toy bomb" police said.
Read: Suspected militants kill soldier in Indian occupied Kashmir
"A 13-year-old boy was killed and another was wounded when they hit a toy bomb left in the grazing area by unknown people," local police station chief Manzoor Hussain told AFP.
Local government official Abdul Hameed Kayani confirmed the incident and casualty.
In February, two children were killed after picking up an explosive device that they thought was a toy.
Unexploded ordnance is often found in the border areas of Kashmir, as India and Pakistan regularly trade artillery fire.
Read: Suspected militants kill soldier in Indian occupied Kashmir
On Tuesday four civilians were killed during heavy exchanges of fire by Indian and Pakistani troops across their border in southern Kashmir.
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