Two jawans were also killed in the encounter which took place on the intervening night of July 29-30.
Two terrorists were gunned down during an encounter with the security forces in Nowgam Sector of Kupwara district of Jammu and Kashmir as Indian forces foiled an infiltration bid.
Troops noticed suspicious movement along the LoC in Nowgam sector during the intervening night of July 29-30 and challenged the intruders, who opened fire, an army official said.
The soldier returned fire leading to the gunbattle in which two terrorists were killed, the official said.
He said two soldiers were also killed while another was injured in the operation which was going on till last reports came in.
Two AK rifles and one Under Barrel Grenade Launcher were recovered from the terrorists.
This is second major infiltration bid foiled by the Army in Nowgam sector this week.
Four terrorists were killed and one was caught alive in a failed infiltration bid on July 26.
The arrested terrorist, later confessed to be a resident of Lahore in a confession video.
Infiltration attempts have been on the rise. There were 90 infiltration attempts until June this year in comparison to 29 attempts in the corresponding period in 2015.