The incident took place near the Line of Control (LoC) in the northern district of Kupwara.
Military sources told IANS that the army noticed suspicious movement on the LoC at Tangdhar.
“When challenged, the infiltrating group fired at the soldiers, triggering a gun battle in which two terrorists were killed and a soldier was injured,” a source said.
“The operation is still on but the infiltration attempt by the terrorists has been foiled,” the source added.
On Wednesday, a solider succumbed to his injuries and a terrorist was shot dead by the army in a gun battle after militants infiltrated into the Kupwara district, near Macchil sector.
Five soldiers were also reportedly injured in that operation.