Following information about presence of militants, the forces launched a cordon-and-search operation in Avneera village of Zainapora area of the district triggering an encounter.
"Two army jawans lost their lives and four others got injured when militants hurled grenades from a house on the search party," said an army official in Srinagar.
"Four militants are inside the house and we have cornered them since evening and hope we will eliminate all the militants," the officer added.
Meanwhile, Jammu and Kashmir police denied that a mosque has been damaged during the encounter.
"No damage to any mosque in #Shopian. Rumour mongers trying to vitiate atmosphere. Action to be taken against such elements," said an official tweet.
Earlier, an army officer was killed while another soldier was injured when Pakistan's Border Action Team (BAT) attacked a defence post in Krishna Ghati sector of Jammu and Kashmir's Poonch district on Saturday.
According to officials, the BAT attacked the post at 5 pm and left two jawans injured, including one Junior Commissioned Officer. One of them later succumbed.
The slain officer has been identified as Jagram Singh Tomar from Madhya Pradesh.
(Reporting by Saleem Qadri)
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