Three heavily armed militants were killed by Indian security forces after they attacked an army camp near the de facto border that divides Kashmir between India and Pakistan, the Indian military said.
During the clash, a civilian worker with the army was also killed.
One soldier was injured during the attack in the militarised camp, in Tangdhar at the centre of a longstanding problematic border between nuclear-armed India and Pakistan, an army officer said.
The officer said, "We heard three blasts initially and a gun battle is on," he also added that the fighters used gun fire and hand grenades to attack the camp.
No more details were immediately available in relation to the incident.
Pakistan and India have fought to take full control of the region since they were partitioned in 1947.
Several rebel groups have been fighting for Kashmir's independence from India and its unification with Pakistan since 1989.
India blames Pakistan for training and arming rebels, and hiding them away inside Indian-held Kashmir but Pakistani authorities reject such claims.
The dispute has left over 68,000 people dead over the last 26 years, two wars have also broken out between the two countries over the territory.