In the first such incident in the past two decades, terrorists exchanged fire with security forces in the dense forests of the Zabarwan range here on Sunday, forcing residents to flee in panic as additional forces were mobilised to strengthen the cordon.

The encounter in the vicinity of Nishat on the banks of the Dal Lake comes close on the heels of a day-long encounter in the Khanyar locality of downtown Srinagar early this month which left a top Pakistani commander of the Lashkar-e-Taiba (LeT) dead.

The encounter in Zabarwan lasted several hours before the guns fell silent but the terrorists managed to flee taking advantage of the thick foliage. However, the search for the fleeing terrorists was continuing when the last reports were received, the officials said.

Eyewitnesses told PTI that the forest area resonated with gunshots shortly after a contingent of Army, police and CRPF personnel appeared there and launched a search operation around 9 am.

The forested area has a cluster of over a dozen houses and many residents fled the locality due to panic. This forest area serves the locals in grazing their cattle and also womenfolk bring firewood from the woods to save themselves from the bone-chilling winter of Kashmir.

"I heard a few gunshots in the morning but I did not know it was happening in the neighbourhood. I have been living here for the past two decades and never witnessed such an incident," Abdul Khaliq, a local resident, said.

"I, along with my wife, immediately left our house and ran for safety. There are at least two dozen houses in this forest area," he added.

Abdul Rashid, another resident of Ishber, has been a frequent visitor to the forest area for quite a long time. This morning, he left his cattle in the forest area and was returning when the encounter started.

"Today, I also took my cow and a few sheep into the woods. While I was coming down, I heard some gunshots. My cattle are still there and I am here waiting at the road for them. This is an unusual sight for us because this is a quiet place otherwise," a visibly disturbed Rashid told PTI.

Soon after the exchange of fire began, additional reinforcements from the Special Operations Group (SOG) of police and the CRPF rushed to the area and placed it under a tight cordon.

The security forces also restricted the movement of civilians in an attempt to prevent any loss of lives. Even media persons, who reached the spot to report the encounter, were kept at a safe distance.

"I, along with other women, went early in the morning in the forest to collect firewood but we did not see anything. Later on, when we reached home, we heard gunshots. I am still wondering what exactly happened. Our relatives are calling us as it is everywhere on social media," a woman, who insisted not to be named, said.

Earlier, police in a post on X said, "A joint police and security forces operation was launched in Zabarwan forest area of Srinagar based on specific intelligence about the presence of terrorists. An exchange of fire ensued during the operation." Amid escalated terror activities, especially after the formation of the National Conference government on October 16, Lt Governor Manoj Sinha recently directed the security forces to go for hot pursuit of terrorists and ensure that no terror activities are carried out to breach the peaceful atmosphere prevailing in the Valley.

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