Guests ran for cover as gunshot after gunshot could be heard in the background.
At least three people were killed and 10 others were wounded including several soldiers.
The outlawed Kurdistan Workers' Party, or the PKK, is believed to be responsible for the attack, which was aimed at a police station and a military police headquarters in the border town.
The Kurdish rebels have stepped up attacks on Turkey's military and police in recent months. This was the first incident involving civilian deaths.
The PKK, which has been designated as a terror organization by the United States and the European Union, is fighting for autonomy in Turkey's mainly Kurdish southeast region, often using bases in northern Iraq for attacks in Turkey. Tens of thousands of people have died in the conflict since 1984.
The Associated Press contributed to this report.