There is tension and confusion in the city of Jammu where a raid by suspected militants left 14 people dead.
An indefinite curfew is still in force, searches are continuing and life is still far from normal as local residents come to terms with the shock and horror of the bloody battle between the militants and the security forces.
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At this rate I think we have to brace ourselves for much worse
"
Jammu resident
"The terrorist was hurling grenades from a black bag as he forced his way inside", said Sanjay Sharma, a junior priest in the Raghunath Temple in the Kashmir winter capital.
"He was hiding behind a pillar of the temple as he fired from his gun," Mr Sharma said.
There was a fierce gunbattle for more than two hours before security forces finally killed the militant. Two others were also killed.
Demonstration
"We were lying injured on the floor of the temple praying to God as the gunbattle went on," Sheela Devi, who suffered gunshot wounds, told the BBC.
Nearly 50 people were injured in the shoot-out.
There was no electricity in the area at the time of the incident, and people say the darkness seemed to help the militants carry out the attack.
Angry crowds held demonstrations outside the temple and the Medical College Hospital, where many of the injured were treated.
Protesters blamed the new government of Mufti Mohammad Sayeed for encouraging militancy with its "soft policy" under which 26 militants were released earlier this month.
"For the last three days we have had three major incidents in the state. What is the government doing about it?" asked Sunil Sharma, a local businessman.
Under fire
"This government lacks a concrete action plan. At this rate I think we have to brace ourselves for much worse," said another man.
Mr Sayeed's political rivals, too, launched attacks on his government.
The leader of the opposition National Conference, Omar Abdullah, said: "The so-called healing touch policy of the mufti government has boosted the confidence of the militants."
He accused Mr Sayeed of having "no clear policy on fighting terrorism", but stressed he did not think the temple attack was the work of militants released under the government's initiative.