Police in Indian-administered Kashmir say two suspected militants and an army soldier have died in a gun battle.
There has been an increase in Kashmir clashes recently
The fighting broke out on Friday morning when soldiers raided a hideout of suspected militants in Rajouri district of Jammu.
The police said the troops were looking for a third militant who is reported to have escaped during the incident.
There has been a recent increase in violence in Jammu and Kashmir after a period of relative calm.
The police said when the troops raided the hideout in a mountainous forest area in Rajouri, the militants fired killing one soldier.
The troops fired back, killing two militants, the police said.
The police said the identity of the killed militants was being ascertained.
On Wednesday, Indian troops killed six suspected militants near the summer capital, Srinagar.
It is not clear whether the troops suffered any casualties in Wednesday's fighting.
A number of militant groups have been fighting Indian rule in Kashmir since 1989 in an insurgency that has claimed more than 60,000 lives.
India believes the militants infiltrate the area from Pakistan-administered Kashmir, a charge Pakistan denies.