Police said the victim identified as Shabir Ahmad Moonga, 30, was killed in Khrew area of Pulwama district on Wednesday night when security forces clashed with a protesting mob.
Locals, however, alleged security personnel had beaten Moonga without any provocation.
Authorities continued with curfew and restrictions for the 41st day on Thursday as the protest shutdown called by the separatists also continued.
For the first time since the ongoing cycle of violence started in the Valley on July 9 following the death of Hizbul Mujahideen commander, Burhan Wani, authorities imposed night curfew in Srinagar district.
The 48-day Amarnath Yatra that started on July 2 is concluding on Thursday.
This year, 2,20,339 pilgrims performed the Yatra despite the violence in Kashmir.