Two soldiers and four militants were killed on Sunday during a gunfight in south Kashmir's Kulgam district, police said.
The militants' bodies were recovered from the site of the encounter while the two Rashtriya Rifies (RR) troopers succumbed to injuries.
Security forces had surrounded Fraesal village following a tip-off about the militants hiding in a house.
"When the militants were challenged, they fired at the forces which triggered the gunfight," the police said.
Six people – three civilians and three soldiers were also injured.
A search operation continued for more holed-up militants.