Troops of India and Pakistan Wednesday exchanged heavy fire and targeted each other's positions on Line of Control dividing the disputed Kashmir region, officials said.
A local government official said the exchange lasted for a couple of hours.
"We have a plan for evacuation in case the need arises," the official said.
So far there are no reports of any damage on either side.
Officials said a similar exchange was reported Tuesday evening at several locations on the LoC, and the intermittent exchange went on throughout the night.
On Wednesday India confirmed that Pakistan shot down one of its fighter jets MiG-21 and that the pilot had gone missing, while Pakistan claimed that he was in its custody.
The incident came a day after the Pakistani army said Indian fighter jets violated the LoC Tuesday morning and released payloads in the Pakistani side.
India claimed that its air force had targeted a camp of Jaish-e-Muhammad group in Tuesday's attack. The group was blamed for the Feb 14 suicide bombing on Indian paramilitary troopers in Indian-controlled Kashmir that killed some 40 people.