The blaze broke out just after midnight and gutted the second-floor apartment in this rural town about 30 miles from Indianapolis.
The cause of the fire was under investigation. The Indianapolis Star reported online Wednesday that investigators were focusing on space heaters.
Three boys, ages 2, 3 and 6, died. Three girls _ ages 3 and 4 and an infant _ and two adults, Bridget Quinlan, 27, and her friend, Russell Messer, 23, were taken to the hospital with burns or smoke inhalation.
Their conditions were not immediately released. Quinlan had been watching the children and her son was among the dead.
Neighbor Chuck Dyer said he, Quinlan and Messer tried to rescue the children.
``When we went through the back door, we heard one of the kids crying. We got through the hallway, grabbed him and pulled him out,'' Dyer said. ``But there was no way to get to the rest of them.''