An army vehicle veered off the road after the driver lost control at Lasjan and hit a tree, a police official said.
He said one soldier was trapped inside the badly damaged vehicle and efforts of other army men to evacuate him did not fructify.
"Local Kashmiri youth rushed to the spot and managed to bring the injured army jawan out by placing a truck next to the damaged army vehicle," the official said.
The video of the incident has been widely shared on 'youtube' and other social networking sites.
The incident comes amidst the ongoing unrest which has claimed 84 lives and thousands others injured in clashes between protestors and security forces.
In July, local residents of Bijbehara in south Kashmir Anantnag district defied curfew to rescue over 20 Amarnath pilgrims whose vehicle had met an accident during the beginning of the current unrest.