Two militants were gunned down by security forces, while a police constable was injured in the gunfight between holed up militants and security forces in Kupwara's Kalaroos area.
An encounter between security forces and the militants is underway and all exits have been sealed, police said.
Police said that a cordon and search operation was launched after they received information on the presence of some militants in Kalaroos area. Two to three militants are believed to be in hiding in the area.
(With inputs from ANI and PTI)