A local elderly woman was the collateral causality of the encounter that lasted for nearly two hours.
The encounter was the fourth in past one week in Kashmir and erupted after troops of 42 Rashtriya Rifles, paramilitary Central Reserve Police Force and police jointly surrounded a village Amlar in Tral, 45 kms from Srinagar, on a specific information about the presence of militants inside the village.
"As the security forces were combing the village, hiding militants opened fire from a house at the surrounding troops injuring two CRPF jawans," said a senior police officer.
"The security forces returned the fire triggering an encounter. The encounter ended after the three militants of the Lashkar-e -Tayiba outfit were killed," the officer said.
One elderly woman also died in the cross fire, according to the officer.
The police said three AK-47 rifles were recovered from the encounter site.