An encounter broke out between the security personnel and terrorists in Mir Mohalla Aripal Tral area of Pulwama district on Sunday morning.
At least two terrorists are believed to be trapped at the incident spot.
The gun battle between the terrorists and the security personnel took place during cordon and search operation (CASO) in the area.
A large-scale joint operation by the security personnel is underway.
More details are awaited.
The Indian army is carrying out CASO after the incidents of terror are on the rise in the state of Jammu and Kashmir.