"During the de-escalation process underway in the Galwan Valley, a violent face-off took place on Monday night with casualties," the Army said in a brief statement.
According to the Indian Army, the face-off lead to "casualties on both sides."
"The loss of lives on the Indian side includes an officer and two soldiers," the Army said in a statement.
The force further stated that senior military officials of both the countries are currently meeting at the face-off site to defuse the situation.
After 1975 this is the first violent incident on the India-China border in which casualties have taken place.
Earlier looking to resolve the dispute over Chinese military buildup, India and China were holding talks in Eastern Ladakh.
Army sources had said there has been disengagement between Indian and Chinese troops at more locations where they had been in standoff positions for last many weeks now.
Further details are awaited.