Security forces on Tuesday morning gunned down two terrorists holed up in a forest area near a village in the Akhnoor sector in Jammu and Kashmir, taking the number of militants killed in the 27-hour gunfight near the Line of Control (LoC) to three, officials said.

One of the three terrorists who fired at an ambulance that was part of an army convoy moving near the LoC on Monday morning was killed by evening in the operation that also witnessed action by special forces and NSG commandos and the use of BMP-II infantry combat vehicles.

The other two terrorists were killed on Tuesday in a span of two hours after joint teams of the army and the police launched the final assault near Assan temple in Jogwan village in the Battal-Khour area, the officials said.

After overnight surveillance, "an intense firefight unfolded today morning resulting in a significant victory for our forces. Relentless operations and tactical excellence have led to the elimination of three terrorists.

“The operation also saw the successful recovery of war-like stores, marking a critical step in maintaining security in the region,” Army's Jammu-based White Knight Corps said in a post on X.

The officials said the slain terrorists are believed to have infiltrated from across the border on Sunday night before appearing outside a temple and targeting the army convoy.

"After a night-long lull, the security forces pushed for a final assault against the holed-up terrorists at around 7 am, leading to a fresh gunfight," an official said.

A couple of deafening explosions followed by intense firing continued for over an hour before the second terrorist was killed, the officials said, adding intermittent exchange of fire continued for another hour before the third trapped ultra was eliminated.

A four-year-old valiant Army dog, Phantom, died in the operation after being hit by a bullet.

In a first, the Army deployed its four BMP-II infantry combat vehicles for surveillance and strengthening the cordon around the attack site, while helicopters and drones were also deployed to locate the hiding terrorists.

The latest encounter in the Jammu region comes amid a surge in terrorist activities in Kashmir where seven attacks have occurred in the past two weeks, resulting in 13 fatalities, including two soldiers.