The Observatory said as many as 60 crude barrel bombs were dropped on different rebel positions in Daraa, which led to the killing of six civilians.
The activist group said three Syrian soldiers were killed and three others snatched by rebels during Thursday's battles in Daraa.
Meanwhile, state news agency SANA said government forces killed dozens of terrorists who attempted to attack military positions in Daraa on Thursday.
Citing a military source, SANA said government troops killed 33 terrorists in the countryside of Daraa.
The jihadi groups, mainly the al-Qaida-linked Nusra Front, have been eyeing the full capture of Daraa, due to its location, less than 100 km from the capital Damascus and its proximity to Jordanian borders, where the militants are reportedly receiving supplies.
The pan-Arab al-Mayadeen said the Syrian forces succeeded to foil the attack of the rebels on military positions in Daraa so far, while activists said the battles for Daraa are still ongoing,
the same case in Ayn al-Arab and Hasaka.