The vehicle, which was stationed at a parking lot, went down the gorge at Chandanwari area after the driver failed to apply hand brake, they said.
All the 10 pilgrims were rushed to Anantnag district hospital.
"One of the pilgrims later succumbed to injuries while condition of two others was stated to be critical," police said, adding that the critically injured persons were being airlifted to a hospital in Srinagar for treatment.