Yusuf Mohamed, the governor of Puntland's commercial hub of Bossaso, says 30 militants and four soldiers were killed during the operation today to recapture Qandala.
Residents confirmed that troops entered the town after fighters retreated into nearby villages.
The seizure of Qandala in October had been the first victory for the Islamic State-linked fighters, who are expanding the areas under their control amid a rivalry with the homegrown al-Shabab extremist group.
The fighters broke away from al-Shabab and declared allegiance to ISIS last year.
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