Acting on a tip-off, police and the army launched a joint operation in Khardang Tarang Thop area under Krishnai police station and came across a group of three militants.
The militants opened fire in a bid to escape and an encounter followed in which two militants were killed on the spot while another managed to escape.
The security forces recovered two 7.65 pistols and four live ammunition from the slain militants while search operations were on to nab those who managed to escape, sources added.