Clashes erupted in Lalchowk area of Islamabad district after news about the killing of two militants in Khudwani Kulgam spread in the area.
Local sources said that youth pelted stones on police and other forces deployed in the area, who retaliated triggering clashes.
Mobile internet services have been suspended in the district to prevent law and order problems.
Earlier police launched a CASO in Khudwani after inputs about presence of militants.
During the searches, an encounter ensued and two militants were killed in the gunfight. The slain militants include Dawood Ahmad Illahi of Hawora Kulgam and Sayar Ahmad Wani of Wanpora Kulgam.
Police sources said that two weapons have been recovered from the slain militants.
They said that an OGW of militants identified as Arif Sofi was also arrested during the gunfight. A pistol has been recovered from his possession, they said.