"We continue to be very concerned by reports of detentions, and continued restrictions on the residents of the region," a senior State Department official said.
"We urge respect for individual rights, compliance with legal procedures and an inclusive dialogue," said the official, who spoke on condition of anonymity after returning from a visit to the region.
Tensions have been high since India revoked autonomous rule in the part of Kashmir it controls on August 5.
Indian authorities imposed a communications blackout and heavy restrictions on movement from the eve of the intervention.
Trump stresses need to reduce India-Pakistan 'tensions'
At least 4,000 people have been detained in IOK since then.
US President Donald Trump has spoken in recent days by phone with Prime Minister Imran Khan and his Indian counterpart Narendra Modi urging both sides to ease the tensions..
Referring to India, the State Department official said, "We urge respect for individual rights, compliance with legal procedures and an inclusive dialogue."
"We are aware of India's concerns but continue to urge that they work as quickly as possible to restore normalcy in the region," she said.
Washington has called on India and Pakistan, both of whom are nuclear powers, to open a direct dialogue to resolve the Kashmir dispute over the mountainous territory.
Trump has offered to play the role of a mediator, saying Modi had requested his services, an assertion that New Delhi formally denied.
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