The Encounter is still on. Terrorists are holed up inside a building and police and security forces have cordoned off the area.
Army Troops and other paramilitary forces have joined police in the encounter.
Ministry of Home Affairs confirmed 5 people including 3 civilians were killed. Eight people are reportedly injured. Eye witnesses say the gunmen were wearing an army uniform. Apart from firing, there are reports of some grenades also being lobbed. The entire area has been cordoned off.
In what may be a related development, five live bombs have been found on the Amritsar-Pathankot railway track and the train services on the route had been suspended.
In the wake of terrorist attack in Gurudaspur today, Home Minister Rajnath Singh spoke to Punjab Chief Minister Parkash Singh Badal and assured him full central assistance to tackle the situation.
The Home Minister said the central government is monitoring the situation and he was confident that the situation would be brought under control. Singh also spoke to National Security Advisor Ajit Doval and Union Home Secretary L C Goyal and reviewed the situation.
The Home Secretary also spoke to Punjab DGP and assured him full central assistance to tackle the situation. The Home Minister ordered BSF to immediately move forces to Gurudaspur to assist police.
He also instructed BSF to enhance vigil along the entire international border with Pakistan.