Two Lashkar I Toiba militants from Pakistan were killed while a local militant was apprehended in an overnight encounter in Meej village of Pampore in south Kashmir's Awantipora police district on Friday.
The gunfight had erupted after the militants fired upon a joint search party of special operation group (SOG) of JK police, army's 50 RR and CRPF last evening.
In the initial exchange of fire two civilians were injured, one of whom later succumbed.
"The contact was established with the militants late evening and the exchange of fire took place again," a police official said.
He said the operation was suspended during the night even as the cordon was tightened to prevent militants holed up inside a house from escaping.
"The guns blazed again in the wee hours and one of the militants was soon gunned down," the police official said.
He said a local militant who was only carrying a pistol was given an opportunity to surrender.
"After persuasion, he came out and handed himself over to the security forces," the police official said.
He was identified as Khawar Sultan Mir of Drangbal, Pampore.
"Khawar had joined the ranks on September 1."
The third militant continued to engage the forces in a fierce firefight.
"He was gunned down late in the afternoon," the police official said.
He said arms and ammunition and other incriminating material were recovered from the slain militants.
They were later identified as Umar Bhai and Huzaifa, both from Pakistan.
The administration shut down the internet services in the Awantipora police district.