The body of a terrorist was recovered from the site where an encounter broke out earlier on Friday in Budgam district, police said.
The exchange of fire took place between terrorists and security personnel in the early hours of Friday in Kralpora area.
The firing has now concluded and the identity of the deceased terrorist is yet to be ascertained.
A search operation is underway in the area.
The fatality comes a day after Jammu and Kashmir Police and security forces, in a joint operation, arrested a terrorist and recovered the dead body of another from orchards in Bijbehara area of Anantnag.
The arrested terrorist, identified as Arif Hussain Bhat, a resident of Fathepora in Anantnag district, sustained injuries in the operation.