Two security personnel were killed and seven people were wounded on Friday when separatist guerrillas ambushed an army convoy near Jammu and Kashmir's Sopore town.
Police said heavily armed guerrillas hurled grenades and sprayed bullets at the passing convoy near Bagu village, 60 km from Srinagar on the outskirts of Sopore.
An Indian Army soldier and a Central Reserve Police Force (CRPF) were killed and seven people, including four civilians, were wounded in the militant attack, a police officer in Srinagar said.
"Soldiers escorting the convoy returned the fire and the exchange of fire continued for some time. The area has been surrounded and massive searches are continuing. The firing has stopped," the officer added.
Reinforcements were rushed to the area. The injured have been hospitalised.
No group has claimed responsibility for the attack on the Srinagar-Bandipore highway.
In another incident, the police shot dead two suspected guerrillas in Nowgam on the outskirts of Srinagar late on Thursday.