The encounter, which is continuing since Mar 20, has claimed the lives of 11 militants and eight security personnel.
On Monday, Mar 23 three militants and three security personnel lost their lives.
On receiving information about militant infiltration in the forest area, the Army, assisted by local police acted promptly and launched a gunbattle.
Police sources said the militants had sneaked into Kupwara a few days ago as the dense forest range is close to the Line of Control (Loc).
Gujjar communities residing in the besieged area have been evacuated to safer places.
A large quantity of arms and ammunition has been recovered from the encounter site. A GPS (Global Positioning System) has also been recovered.
There are reports that the Army is fighting around seven militants.