Two soldiers were injured on Monday when terrorists attacked an Army truck with grenades in the Machedi area of the Kathua district.
This triggered an encounter between terrorists and security forces where reinforcements have been rushed.
Defence officials said the area falls under the 9 Corps of the Indian Army, adding more details were awaited.
According to reports, at least two soldiers were injured in the incident.
The incident took place at Badnota village in Lohai Malhar, 150 kilometres from Kathua town, when some Army vehicles were on a routine patrol in the area, officials said.