Insurgents exploded a powerful bomb and opened fire at the road opening party of 44th Assam Rifles battalion, killing one jawan and injuring three others, officials said.
When the security forces returned fire, an encounter ensued lasting about an hour, they said.
The injured jawans were taken to hospital.
Insurgents ambushed the security patrol minutes before the arrival of BJP Prime Ministerial candidate Narendra Modi to address a rally in Imphal.
Charging that people of the state were being "suppressed" by central forces in the name of dealing with insurgents, militant outfit United Revolutionary Front had given a call for boycotting Modi's visit.
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