There were no casualties, officials said.
The train on the way to Baramulla from Banihal district derailed between Mazhama and Budgam at around 9:45 am.
"An engine and a coach got derailed and luckily there were no injuries reported in the incident," a railway official said.
The train service between Budgam and Baramulla has been suspended in view of the incident.
At present, the trains chug regularly on the Baramulla- Banihal sector in J&K and thousands of passengers including students and office goers travel in the trains everyday.