Two soldiers were killed and others injured in the clashes between the security forces and suspected Al-Qaeda terrorists in Mukalla city, Hadramout, on Monday.
The clashes took place at the house of the suspects in west Mukalla, independent sources said.
Security reinforcements were dispatched to the site but the suspects ran way before their arrival.
Hand grenades and RPGs were used in the confrontations that came amid an intensified hunt for Al-Qaeda suspects across the country.
Al-Qaeda suffered devastated blows in late 2009 and early 2010 during the successful terror operations in the south and north. Dozens of terrorist suspects were killed, injured and arrested.
In another incident but this time in Marib Province in northeast Yemen, a soldier was killed and others hurt Monday at a checkpoint that was set up by tribesmen protesting the cuts in the salaries of soldiers from Al Tuaiman tribe.
The tribesmen shot the security patrol carrying the victims after the driver refused to stop at the illegal checkpoint.
The vehicle broke down after it came under heavy fire from the machine guns of the saboteurs, according to independent sources