Officials and locals said the latest bout of violence started after Indian soldiers and counterinsurgency police cordoned off Reban village in the southern valley early Sunday on suspicions that armed rebels were hiding in a home.
A firefight broke out during which the five men were killed, army spokesperson Colonel Rajesh Kalia told AFP adding that two more freedom fighters were suspected of being trapped inside the cluster of cordoned homes.
Hundreds of villagers gathered on the streets near the firefight, throwing stones at government forces and shouting "Go India, go back".
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Police fired tear gas and metal pellets to disperse the crowd, another police official told AFP on condition of anonymity. There were no immediate reports of injuries.
New Delhi in August revoked the semi-autonomous status of Occupied Jammu and Kashmir, and imposed a months-long curfew that cut off communications and restricted movement.
The curfew has been eased in recent months, although the disputed region remains affected by the nationwide coronavirus lockdown in India.
Sunday's fighting came a day after unidentified gunmen shot dead a young man in the northern Sopore area. The motive was not known.
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