Eight bodies were found scattered at a militant den in Moulvibazar Sadar upazila, Nasirpur, they said.
The militants might have blown themselves up inside the hideout, Chief of Counter Terrorism and Transnational Crime unit Monirul Islam said.
Earlier in the day, police launched 'Operation Hit Back' to flush out militants from their hideouts.
Police also raided a militant hideout in Comilla municipality where at least two militants are said to be hiding with huge explosives.
Today's operation was launched after the chief of neo-JMB, a terror outfit linked to the country's worst attack in Dhaka, was killed along with three terrorists in 'Operation Twilight' in Sylhet.
During the 70-minute raid yesterday at Nasirpur, more than 300 shots were fired but police could not confirm if any of the militants were killed.
The SWAT team will begin next operation at Borohat in Sadar headquarter after wrapping up the Nasirpur part, he added.
Authorities have enforced a cordon in the areas, barring onlookers in the vicinity.
The decision most likely was prompted after security lapses led to casualties during the Sylhet operation.
Six people, two of them police officers, were killed when militants hurled grenades on the onlookers during the raid.
IS has claimed several attacks in Bangladesh, but the government rejects the presence of foreign terrorist groups in the moderate Muslim-majority country, blaming home-grown groups such as the neo-JMB for terrorist attacks.
Bangladesh has been witnessing a spate of attacks on secular activists, foreigners and religious minorities since 2013. The country launched a massive crackdown on militants specially after the Dhaka cafe attack.
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