"Two terrorists have been killed in an ongoing operation in Panar forest area of Bandipora district (in north Kashmir)," a defence spokesman said.
He added that a jawan also lost his life in the operation.Further details are awaited, the spokesman said.
A search operation was initiated in the area earlier this week after an Army patrol team were fired at by militants.
On Wednesday also, in a ceasefire violation by Pakistani troops along the International Border (IB) in Samba district of Jammu and Kashmir, four Border Security Force (BSF) personnel, including an officer, were killed and five others were injured.