The failure, which is likely to be seen as something of an embarrassment for the regime, came amid soaring tensions in the region over the North's nuclear weapons ambitions.
"The missile blew up almost immediately," the US Defence Department said of the early morning launch which was also monitored by the South Korean military.
Neither was able to determine immediately what kind of missile was being tested.
It came a day after North Korea displayed nearly 60 missiles -- including what is suspected to be a new intercontinental ballistic missile -- at a parade to mark the 105th birthday of its founder Kim Il-Sung.
The parade was held in front of the cameras of invited world media, who were still in Pyongyang when Sunday's test failure was detected.
Pyongyang's rogue atomic ambitions have come into sharp focus in recent weeks, with United States President Donald Trump vowing a tough stance against the North and threatening unilateral action if China failed to help curb its neighbour's nuclear programme.
The latest missile test attempt comes just hours ahead of a visit by Vice President Mike Pence to Seoul, where the nuclear issue will be top of the agenda at talks with South Korea's acting president Hwang Kyo-Ahn.
Trump has repeatedly said he will prevent Pyongyang from its goal of developing a nuclear-tipped ballistic missile capable of reaching the mainland United States.
As hostilities in the region surge Trump has sent an aircraft carrier-led strike group to the Korean peninsula to press his point.
The North has reiterated its constant refrain that it is ready for "war" with the US.
