Commander 'Launcher' Mulla was killed with two other militants while five insurgents were injured during operations by the security forces.
Troops targeted militants at Dopak Super Kot in the central part of Kurram Agency, as insurgents blew up a bridge along the Aroli road, officials said.
Security forces are currently conducting operations against militants in Kurram Agency, which has been rocked by violent sectarian clashes between Shias and Sunnis over the past two years.
Taliban militants who infiltrated the region have been targeting Shias.
After the operation was launched by security forces, militants have sought to mingle with the local population by cutting their long hair and trimming beards.
The security forces have focussed on separating the militants from the local people.