The operation started early on Monday in response to an attack on a military convoy in Mohmand, a tribal area bordering Afghanistan. The Pakistani army has deployed artillery, armor and combat helicopters.
"The fighting broke out when militants attacked a troop convoy," said Pakistani military spokesperson Maj. Gen. Waheed Arshad.
Mohmand is part of Pakistan's so-called tribal region, which consists of seven semi-autonomous areas. Mohmand residents live under strict tribal laws, following the customary pre-Islamic "code of honor" known as Pashtunwali.
There have been few prior reports of clashes between Mohmand tribesmen and government troops, although neighboring regions are known for their support for Islamist groups linked to al-Qaeda.
Some Western sources have claimed that al-Qaeda leader Osama Bin Laden and his close aides could have found refuge in the mountainous Mohmand region.