Militants shot dead a policeman and a civilian in north Kashmir's Sopore town on Saturday morning, leading to panic in the area.
Police in Srinagar said, the guerrillas killed Gulam Nabi, a constable of a local armed battalion, and Arif Ahmad Dar near the bus stand in Sopore town, 54 km from from srinagar.
"The victims were fired at from close range and died on the spot," a senior police official said in Srinagar.
Panic gripped the area after the shootout and police and paramilitary forces have surrounded the place to search for the assailants.
No group has so far claimed responsibility.