The battle between Indian troops and militants who attacked an air force base at Pathankot near the Pakistani border has entered a second night, the BBC News reported.
At least four attackers and seven Indian soldiers have died so far.
It is unclear whether all the militants have been killed, with the home secretary saying two gunmen were still at large.
The attack is being seen as a blow to an apparent Indo-Pakistani peace initiative launched just days ago.
Fresh gunfire and a blast were heard at the base on Sunday, more than a day after the attack started.
Pakistan's foreign ministry and the US State Department have condemned the attack.
The attack started before dawn on Saturday, when a group of gunmen - wearing Indian army uniforms - entered the residential quarters on the base.
Hours of heavy gunfire followed, and a helicopter was seen firing at the facility. On Saturday afternoon, police said the base had been secured.
However, fresh gunfire was reported on Sunday morning.
Pathankot air force base is about 430km north of the Indian capital, Delhi and is on the road linking Indian-administered Kashmir with the rest of the country.
Source: MENA
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