The encounter erupted at Munjh Marg area of Shopian during a cordon and search operation which was launched by joint forces following an input about militant presence.
"When the cordon was being laid, the hiding terrorists fired indiscriminately The fire was effectively retaliated leading to an encounter. In the encounter three LeT terrorists were killed," a security official told UNI.
Additional Director General of Police, Vijay Kumar identified the two slain as Lateef Lone of Shopian and Umair Nazir of Anantnag.
"Lateef Lone was involved in killing of a Kashmiri Pandit Shri Purana Krishna Bhat and Umer Nazir was behind the killing of Bahadur Thapa of Nepal," Kumar said.
He said an AK 47 rifle and two pistols were recovered from the encounter site.
(With UNI inputs)