The encounter took place in Pariwan area of the south Kashmir district on Wednesday after the security forces launched a cordon and search operation following information about the presence of terrorists there.
"Killed JeM #terrorist identified as Babar bhai of #Pakistan, active since 2018 in the areas of Shopian-Kulgam," Kashmir Zone Police said on Twitter.
The police said an AK rifle, a pistol and two grenades were recovered from the site of the encounter.
A policeman was also killed and five persons including three soldiers injured in the encounter.
''One police personnel SgCt Rohit Chhib attained #martyrdom, 03 Army soldiers got injured. 02 civilians also got minor injuries. 01 #terrorist of #terror outfit JeM killed. #Operation continues,'' Inspector General of Police, Kashmir Zone, Vijay Kumar, had said on Twitter.
An Army spokesman said the operation was launched based on HUMINT (human intelligence) about the presence of terrorists in the area and the security forces had to exercise maximum restraint since the area had civilians even as the terrorist opened fire and lobbed a grenade.
"Suspect houses were cordoned as the security forces were carrying out house to house searches. At about 8.45 PM, while searching a house, a terrorist opened fire with AK and lobbed a grenade. ''Since the area and house had civilians, the security forces exercised restraint to first evacuate the civilians. In the process one JKP Constable was mortally wounded, three soldiers and two civilians were injured," the spokesman said.
He said the injured, including the civilians, were evacuated to Army's 92 base hospital here, including the evacuation of one of the civilians by an Army helicopter. All the injured are stable, he added.