At least five Turkish soldiers were wounded during clashes with Kurdish guerrillas in Yuksekova, a town of Hakkari province.
The fighting took place when Kurdish guerrillas stormed a military convoy Thursday midnight.
Guerrillas hit the convoy with rocket propelled grenades and light weapons. Five soldiers were wounded, Turkish officials said. One soldier is reportedly in a serious condition.
Locals says military casualties are heavier.
Explosions and gunfire could be heard from the city center. There was also a exchange of fire in outskirts of Yuksekova.
After the incident 12 tanks and 10 armored vehicles rolled through the Yuksekova's main street.
Two cobra helicopters were seen flying to the site of the clash.