A junior commissioned officer and two militants were killed in a fierce gunfight at Garoora, a forest hamlet in north Kashmir's Bandipore district, early on Thursday morning.
After receiving a tip-off about the militants' hide-out, Army troops cordoned off the house in Garoora village, said the police.
"The militants opened fire at the troops and a JCO was killed at the spot," said a senior police official.
"The troops also returned fire and two militants were killed in the ensuing gunfight. Several arms and ammunition were also recovered from the encounter site," said the officer.