The United States will offer financial support to the relatives of the ten people it mistakenly killed during a drone strike on the Afghan capital, Kabul, in August.
An aid worker and nine members of his family, including seven children, died in the strike.
The Pentagon said it was also working to help surviving members of the family relocate to the United States.
The strike took place days before the United States military withdrew from Afghanistan.
The United States intelligence had tracked the aid worker’s car for eight hours on 29 August, believing it was linked to IS-K militants, American Central Command’s Gen Kenneth McKenzie said last month.
The investigation found the man’s car had been seen at a compound associated with IS-K, and its movements aligned with other intelligence about the terror group’s plans for an attack on Kabul airport.
At one point, a surveillance drone saw men loading what appeared to be explosives into the boot of the car, but these turned out to be containers of water.
Gen McKenzie described the strike as a “tragic mistake” and added that the Taliban had not been involved in the intelligence that led to the strike.
The strike happened as the aid worker pulled into the driveway of his home, 3km from the airport. The explosion set off a secondary blast, which US officials initially said was proof that the car was indeed carrying explosives. However, an investigation found it was most likely caused by a propane tank in the driveway.
The compensation offer was made on Thursday in a meeting between Colin Kahl, the under-secretary of defence for policy, and Steven Kwon, the founder and president of an aid group active in Afghanistan called Nutrition and Education International, the Pentagon said in a statement.