Troops foiled a major infiltration bid when they killed two militants in Keran sector, a defence ministry spokesman said on Friday.
He said troops guarding the Line of Control noticed a group of militants sneaking into this side from Pak-occupied Kashmir late on Thursday night under the cover of darkness.
When challenged and asked to surrender the militants opened fire.
The fire was returned and in the encounter two militants were killed, the spokesman said.
The operation was still on, he added.