The militants were killed in the encounter at Awoora village in Pahalgam area of the district, an army official said.
Acting on specific intelligence input about the presence of militants in the village, security forces yesterday launched a search operation in the area.
He said as the forces were conducting the search operation, the hiding militants fired upon them.The security forces retaliated, ensuing an encounter.
The exchange of fire went on till late in the evening after which it was halted for the night, the official said, adding it was resumed in the wee hours today and the three militants were killed in the gunfight.
Three AK-47 rifles have been recovered from the encounter site, the official said adding the operation has been called off.