Security forces launched a cordon and search operation in Khudwani area of Kulgam district following specific information about the presence of some militants there, a police spokesperson said.
Two militants were killed in the encounter, while the third one was captured alive, he said adding their identity and group affiliation was being ascertained.
In a similar case yesterday, two local Hizbul Mujahideen militants were killed while the third surrendered during an encounter with security forces in Shopian district.