One terrorist was killed while one soldier lost his life during a gunfight at Pandoshan village in Shopian district of Jammu and Kashmir on Friday.
Earlier, it was reported that two soldiers were injured in the encounter.
Weapons and warlike stores were recovered in the operation.
The operation is still underway.
The slain jawan has been identified as sepoy Rambir of 34 Rashtriya Rifles. He was a resident of Hulwana village of Mathura district in Uttar Pradesh.
The Army's Northern Command mourned his "supreme sacrifice".
"All ranks salute the supreme sacrifice of Sepoy Rambir and offer deepest condolences to the family," the Northern Command said on Twitter.
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