Officials said the incident occurred around midnight when Border Security Force (BSF) troops deployed along the LoC fence in Keri sector of Rajouri detected some suspicious movement.
A heavy exchange of fire ensued for about 30 minutes and the guns then went silent from the other side, they said.
A search was conducted early morning during which the BSF party recovered the body of the militant along with an AK-47 rifle, six loaded magazines and a monocular night vision device from the Pakistan side.
"It is understood that the remaining terrorists took advantage of the undulating hilly ground and jungle and retreated to their side. An infiltration bid was foiled by alert troops," they added.