Two terrorists have been killed in an ongoing encounter at Sagun area in South Kashmir's Shopian district, officials said on Wednesday morning.
The encounter started between terrorists and security forces on Tuesday evening.
The firefight took place after security forces cordoned off the area and launched a search operation on the basis of a specific information about presence of terrorists.
The police made announcements to the holed up terrorists to surrender but they refused to do that.
As the security forces zeroed in on the spot where terrorists were hiding they came under a heavy volume of fire that triggered the encounter.
"Two unidentified terrorists killed. Operation going on," police said.