A civilian was also injured in the firefight, which ensued after militants attacked an Army convoy, said Army spokesman Colonel Rajesh Kalia.
The militants fired at the patrol team in Qazigund area which has been cordoned off for searches, the officer said.
Meanwhile, region's Police Chief, Shesh Paul Vaid said they have recovered two bodies of militants.
Qazigund (Jammu and Kashmir) [India], December 4: An Army jawan was injured on Monday in an ongoing encounter with terrorists in Jammu and Kashmir's Qazigund.
He said another soldier was injured in the firefight. The hiding militants opened fire on a search party that tried to zeroed in on the concrete structure.
Soon after the killing of militants, surging crowds clashed with the security forces.
The security forces used improvised explosive devices to blow up the house in their final assault against holed up militants, the police sources said. He said the search operation is on. "When last reports came in the intermittent firing was going on".