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The gun battle broke out in Lurgam-Tral village, 45 kms from Srinagar, on Friday evening and lasted for about 18 hours, officials said.
The intelligence information about the movement of the JeM militants was gathered by the CRPF which was shared with other agencies and the state police following which a team of CRPF, Army and local police cordoned off the area.
The militants resorted to indiscriminate firing after they found themselves trapped. In the ensuing encounter, six Jaish militants, also including a Kashmiri commander, were killed.
Security forces recovered six AK-56 and two AK-47 rifles besides ammunition and sophisticated communication devices, the officials said.
CRPF Director General V K Joshi complimented the CRPF personnel involved in the operation and said they would be suitably rewarded.
The operation comes four days after two CRPF constables engaged in intelligence gathering were killed by militants in Pulwama district.
Elsewhere in the Valley, one more militant was killed by security forces in Kutta forest of Bandipore in north Kashmir.
The encounter was still on, officials said.
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