Police said militants tossed a powerful handgrenade at security personnel near the main bus stand, which exploded killing a civilian bystander identified as Mehraj-ud-Din Ningli on the spot and wounding 13 others.
The injured were taken to the sub-district hospital at Sopore for treatment. No group has yet claimed responsibility for the attack.
Paramilitary troops and police jointly searched the area.
Also read: More stories from Jammu and Kashmir
More from rediff