Pakistan says it has shot down two India Air Force jets in its airspace in Kashmir and arrested one pilot on the ground.
Military spokesman Maj Gen Asif Ghafoor said one of the planes had fallen in Pakistan-controlled territory while the other fell in Indian territory.
On Tuesday India launched strikes against militants in Pakistan.
Those raids were in retaliation for a militant attack on Indian troops in Indian-administered Kashmir.
Tensions have been high since the 14 February suicide attack on an Indian paramilitary police convoy, which killed at least 40 soldiers.
Also on Wednesday, Pakistan’s foreign ministry said Pakistani jets had launched air strikes across the line of control dividing Pakistani- and Indian-controlled Kashmir.
Pakistan said it had “taken strikes at [a] non-military target, avoiding human loss and collateral damage”.
Indian authorities said the Pakistani jets had been pushed back.
Both India and Pakistan claim all of Muslim-majority Kashmir, but control only parts of it. The two countries have fought three wars and a limited conflict since independence from Britain in 1947 – and all but one were over Kashmir.