Five villagers, including a Village Defence Committee member, were gunned down by militants at Chajjroo village near Mahore in Udhampur district of Jammu region late on Friday night.
Police said 9 villagers including some women were injured in the shoot out.
Three seriously injured villagers have been airlifted to Jammu for specialised treatment, they said, adding that no group had so far claimed responsibility for the attack.
A group of heavily armed militants swooped in Chajroo village of Mahore tehsil between 9 pm and 10 pm on Friday and opened fire on VDC posts, police said.
The VDC members also retaliated but later escaped towards the village in view of the heavy firing from the ultras'side.
The militants, who advanced towards the village while chasing 2 VDC members, continued indiscriminate firing in which 5 persons were killed they said.
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Meanwhile, security forces have rushed to the village to track down the militants, who fled after the incident.
The identity of the victims was being ascertained, the sources said.
(with inputs from PTI)