The clash began when terrorists opened fire on security forces conducting a search operation in Zaloora Gujjarpati, located within the Sopore police district.
Security personnel had launched the operation following intelligence reports about the presence of armed militants in the area.
Heavy exchange of fire was reported from the site, with security forces cordoning off the region to prevent any escape.
Officials confirmed that there have been no casualties reported on either side as of now.
The situation remains tense, with reinforcements dispatched to assist in neutralising the threat. Authorities have urged residents to stay indoors and avoid the area as the operation continues.