They were killed in Toot Maar Ghali area of Nowgam sector on the Indian side, a defence official told IANS in Srinagar.
Alert army troops had launched an operation on Thursday morning following information that a group of terrorists sneaked into Indian side from across the border, the official said.
"Two terrorists were killed on Thursday and the other two were killed on Friday. The operation still continues," he said at 12.30 p.m.
The LoC is the de facto border between India and Pakistan in divided Jammu and Kashmir.