The incident happened early today when a joint squad of the Central Reserve Police Force (CRPF) and state police was out for an operation in Lakheri area of Giridih district.
Officials said a heavy exchange of fire took place between the two sides and CRPF's second-in-command H K Jha was seriously injured in the encounter.
"The officer later succumbed to his injuries.No other injuries have been inflicted on the forces side," a senior officer said.
During the operation, two Naxalites have been held with some arms and ammunition and a search operation has been launched in the area, the official said.