More than 100 militants from Afghanistan attacked the village of Kharaa in Nusrat Darra area of Upper Dir on Wednesday, said officials.
Two members of the local peacekeeping committee were also killed, while five were injured, according to official sources.
The attack took place early in the morning with at least a hundred militants moving in from Afghanistan, said an official from Peshawar.
The militants torched down a school and are engaged in a battle with ground troops and gunship helicopters, said another official.
Local sources said that one member of local peace-keeping committee was killed during the exchange of fire.
Militants also destroyed three schools in areas of Nusrat, Soro and Shahteer villages respectively of Upper Dir.
"According to reports from the two villages, between 550-600 militants launched the attack at around 5 in the morning and the fighting continued for several hours," police official Abdul Sattar told Reuters.
Earlier, 27 security personnel and three civilians were killed when militants rampaged a security checkpost in the village of Shaltalou in the same area in Upper Dir on June 1.
There have been five major attacks from Afghanistan in the last month, with up to 250 to 300 militants reportedly crossing over and attacking posts in Dir Mohmand and Bajaur.
Afghanistan has also alleged that Pakistan has fired over 400 rockets over the border during the last month. Pakistan rejects these allegations, saying only that “a few accidental rounds” may have crossed the border when it pursued militants who had attacked its security forces.
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