Near the border with Russia, in the Kakheti region, militants had taken several civilians hostage.
Georgian troops were called into rescue the hostages on Tuesday.
During a firefight with the hostage takers three soldiers were killed, five were wounded, eleven militants were killed, and all the hostages were safe.
The standoff is continuing with six remaining militants hiding out in a gorge, surrounded by Georgian Interior Ministry forces.
It is believed that the group are extremists who crossed over from the Russian area of Dagestan, in the Caucasus.
Dagestan is an area that insurgents have tried to form their own Islamist nation in.
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