Two troopers of the 4 Assam Rifles and another man were killed in a gun-battle between security forces and insurgents in Manipur's Chandel district on Wednesday.
Intelligence sources told IANS that the chance confrontation took place at 6 am at a place between Sajik and Tamol villages. The area falls under the Chakpi Karong police station.
There was heavy firing exchanges for several minutes.
Hearing the gunfight and bombs exploding nearby, villagers around the area fled.
Although the identification of the victims was on-going, officials said one of the victims could be a villager caught in the cross-fire.
Most of the scared villagers are yet to return to their homes.
The insurgents managed to escape, an official said, even as additional forces were rushed in.
Assam Rifles troopers recovered one AK-47 rifle with ammunitions and three bombs from the ambush site. No weapons were taken away from the dead or injured troopers, sources added.
Top ranking police and Assam Rifles officers were at the spot to supervise combing operations.
No arrest was made. The insurgents are said to have escaped through the international border.
No underground outfit has claimed responsibility for the attack yet.
On Monday, insurgents of the People's Liberation Army, the military wing of the Revolutionary People's Front ambushed a column of 18 Assam Rifles killing two troopers and wounding six others near the Chandel district collectorate office.
Security was tightened following the ambush.