India's air force says it's attacked what it calls "terror camps" across the ceasefire line in Pakistan in the disputed territory of Kashmir.
Indian defence expert Praful Bakshi says the air force considers the strikes a successful operation.
"Twelve mirages carried out a surgical, actual surgical strike, air strike, on the biggest terrorist camps supported by the Army - shows that India's resolve is absolutely steel-firm."
It's the first time bombs have been dropped since the war with Pakistan over Kashmir began in 1971.
Both India and Pakistan claim all of Muslim-majority Kashmir, but control only parts of it.
India says the airstrikes hit a training camp of terror group Jaish-e-Mohammed.
Indian foreign secretary Vijay Keshav Gokhale says the government received intelligence the group was planning further attacks.
"The government of India is firmly and resolutely committed to taking all necessary measures to fight the menace of terrorism. Hence, this non-military pre-emptive action was specifically targeted at the Jaish-e-Mohammad camp."
The attack comes at a time of increased tension between the nuclear-armed neighbours and neither country is showing signs of backing down.
Earlier this month, a car bomb attack, claimed by Jaish-e-Mohammed, killed at least 40 Indian police officers in Kashmir.
To which India vowed to retaliate.
India accuses Pakistan of allowing militant groups to operate on its territory, something Pakistan denies.
Indian Prime Minister, Narendra Modi is vowing to stand up for the country.
"I want to assure you the country is in safe hands. I take an oath upon this soil that I won't let this country get erased; I will not let the country stop. I will not let the country bow. I take an oath upon this soil that I won't let this country get erased."
Pakistan's version of events are very different.
It says the strikes didn't cause any damage and Indian aircraft were forced to retreat when Pakistani jets were launched against them.
President Arif Alvi told a conference in the Pakistani capital Islamabad that the country will defend itself should India cross into its territory again.
"My armed forces have stopped terrorism. They've laid down their lives doing this ... (SOUNDS OF CHEERING) ... So let nobody in the region, or anywhere else even think about the fact that they can harm my country."
Pakistani Foreign Minister Shah Mahmood Qureshi is accusing India of distorting the truth for its own gain, pointing to elections due in May.
"Once again, (the) Indian government has resorted to a self-serving reckless and fictitious claim. This action has been done for domestic consumption, being an election environment, putting regional peace and stability at grave risk. The claimed area of strike is open for the world to see the facts on (the) ground."
The European Union is warning against more attacks.
Spokeswoman Maja Kocijancic says the bloc is watching closely. "We are following very closely the current developments between India and Pakistan. We remain in contact with both countries, and what we believe is essential, is that all exercise maximum restraint and avoid further escalation of tensions," she said.