The Libyan Army has killed 12 Islamic State militants near Tazerbu, destroyed their vehicles and confiscated weapons and ammunition during a joint operation, a military said.
"Joint forces of military battalions and security elements chased a number of remnants of the terrorists, who were hiding in the uninhabited site west of Tazerbu," it said on Saturday.
The small oasis town, that is the key provider of groundwater in west and south Libya, witnessed the deadly attack on Friday when dozens of gunmen on armed vehicles targeted its police station and a number of government buildings.
Eight people were killed and more than 15 others were injured.
The terrorists also took dozens as hostages before they withdrew from the area. The army then issued orders to "eliminate" the terrorists.
The UN Support Mission in Libya on Saturday condemned the attack, and call on parties in the conflict to "immediately cease targeting civilians and civilian objects in compliance with International Humanitarian Law."