Two insurgents are believed to be dead after Canadian and Afghan troops exchanged gunfire with Taliban forces in the Panjwaii district on Friday.
About 20 members of Quebec's Vandoos regiment and 60 Afghan soldiers were searching compounds for weapons when they were confronted by Taliban insurgents.
A few minutes later, a firefight began with the Taliban firing bullets, rockets, rocket-propelled grenades and mortars at the troops.
The firefight went on for about 45 minutes, reported CTV's Murray Oliver, who has been embedded with Canadian troops in Afghanistan.
The troops exchanged gunfire in the village of Lacookhal, just south of Howz-e Madad, which Canadian troops targeted and entered during Operation Baaz Tsuka.
"Canadian troops successfully took Howz-e Madad without firing a shot but for a long time it's been believed that there are pockets of Taliban still running around these areas," Oliver told CTV Newsnet.
It's believed two Taliban fighters were either wounded or killed in Friday's firefight, but Canadian troops suffered no injuries.
"In a way this is kind of a victory for an important program that is going on," said Oliver.
Under the program, Canadian troops are teaching Afghan soldiers how to operate in a combat environment, he said.
"This represents in the minds of Canadians a real victory in this training approach to help the Afghan National Army develop combat capacity, so that of course eventually they can take over the fight and Canadian troops can come home," Oliver said.
An air strike against the Taliban had to be called off because there were civilians in the region.
NATO said it's working hard to reduce civilian casualties during the latest major offensive, Baaz Tsuka, which is now winding down.
"I think it's fair to say the army is really conflicted in a way. On the one hand, of course, they really want to avoid Canadian military casualties, in part because they know it's become a political hot potato ... as well of course, they want to avoid Afghan civilian casualties which can also really damage the operation," Oliver said.
"NATO is trying to figure out exactly how to preserve Canadian lives, preserve Afghan lives, and at the same time effectively take on the Taliban and beat them in battle so that this war can be wrapped up. It can be a very difficult thing."
In one of the worst incidents, 31 people died last October during NATO air strikes in the Panjwaii district, during Operation Medusa.
Militant supporters of the Taliban have recently stepped up attacks on Afghan and western forces, sparking the bloodiest fighting since the fall of the hardline regime five years ago.
With a report from CTV's Murray Oliver
