Two militants and a civilian were killed while two Army jawans were injured in an overnight encounter in Kulgam district of Kashmir, police said on Monday.
The death of the civilian triggered clashes between locals and security forces in the area.
A senior police officer said that both the militants have been killed in the encounter and their bodies recovered.
He said the identity and group affiliation of the slain militants was being ascertained.
However, sources identified the deceased as Javed Ahmad Kachroo and Idrees Nengroo, both affiliated with Hizbul Mujahideen.
Earlier in the day, a civilian died after he was hit by a bullet. Police said Asif Ahmad Tantray was hit by a "stray bullet" near the scene of the encounter but locals alleged that the youth was shot dead by security forces in "cold blood".
The sources said protests broke out in Redwani Bala area while the security forces were engaged with the two holed up militants. The youth also resorted to stone-pelting during the protests, they added.
Although the encounter is over, clashes between protestors and security forces were going on till last reports came in.