Security forces in Indian-controlled Kashmir say they have killed two militants in central Srinagar, ending a gunfight which lasted nearly 24 hours.
Troops and militants began firing on Wednesday
The two gunmen had been holed up in a central hotel near a busy market. Seven policemen and a civilian also died. Dozens were wounded, police said.
The Pakistan-based Al-Mansoorian group said it carried out the attack.
Officials hope recent violence does not deter tourists returning to the state amid India-Pakistan peace moves.
More than 60,000 people have been killed in Kashmir since 1989 when an armed separatist insurgency began.
The gunmen barricaded themselves in the hotel near a building used as a camp by paramilitary troops on Wednesday.
Locals fled the firing in panic
There was panic among shoppers and traders in the Budshah Chowk area of Srinagar as people fled gunfire.
Police and troops swiftly surrounded the building and cordoned off the area.
Al-Mansoorian said a self styled local commander, Abu Hamza, had been able to escape from the scene and had returned to base.
After the siege was over, police fired tear gas to disperse supporters of the militant group who had gathered to chant slogans.
Violence decreased in Indian-administered Kashmir India and Pakistan began peace moves in 2004.
But there have been some high-profile attacks in Srinagar in the last few months and army and paramilitary bases are often targeted in suicide attacks.
Tourists, too, who are an important part of moves to rebuild Indian-administered Kashmir's economy after years of conflict, have also been singled out this year.
Both India and Pakistan lay claim to Muslim-majority Kashmir in its entirety and have fought two wars over the region since 1947.