The attack occurred around 3:30 a.m. when a bomb was fired into the government house compound, which protesters called People Alliance for Democracy have occupied since late August.
One man died in hospital and more than 20 protesters were also admitted to nearby hospitals though some were later released, according to hospital officials.
The local media also said PAD security guards did not allow police and reporters to enter the government house, citing security reasons.
PAD leaders Thursday denounced the attack and accused the government of staging attacks on them.
On Oct. 30, 10 protesters were wounded in a bomb attack on the government house.
The latest attack came a day after the end of the cremation ceremony of Princess Galyani Vadhana, the older sister of King Bhumibol Adulyadej. All political activity was suspended during the cremation period.
Since May 25, the PAD has staged marathon rallies against two successive coalition governments led by the People Power Party, accusing their leaders of being political proxies of former Prime Minister Thaksin Shinawatra, who fled to Britain in August just as he was to appear in court to face corruption charges.
Thaksin left Hong Kong for Dubai after divorcing his wife, Potjaman, last week. The ousted Thai prime minister earlier vowed to fight his political enemies after the British government revoked his entry visa.