Jamaican security forces hunting for alleged drugs lord Christopher "Dudus" Coke have stormed his Kingston stronghold.
Gunfire erupted and explosions could be heard as they moved into the Tivoli Gardens area, backed by helicopters.
Supporters of Mr Coke are fighting to stop his extradition to the US on drug and gun-running charges.
A soldier was killed in the latest fighting, following two police deaths on Sunday.
TIVOLI GARDENS
Continue reading the main story- Located on Jamaica's south-eastern coast, far from tourist hub in north
- Built in late 1960s on grounds of a cleared dump known as the Dungle or "dung hill"
- Warren-like public housing project with population of about 25,000
- One of Jamaica's notorious "garrison" slums - described as "a state within a state"
- Power base of Prime Minister Bruce Golding's West Kingston constituency
- Invaded in 2001 by security forces in search of illegal weapons; 25 people killed in three-day stand-off
- Four residents died in a similar operation in 1997
At least one other soldier was also wounded and six police officers received injuries on Sunday.
There are reports of bodies lying in the streets in the latest operation, the BBC's Nick Davis in Kingston says.
There are also reports of violence in other parts of Kingston, raising fears that the unrest is spreading.
A state of emergency was declared in parts of Kingston on Friday after several police stations were attacked.
Warning US citizens against travel to Kingston and the surrounding area, Washington said access roads to the airport were being blocked at intervals by the unrest.
"Access to the Norman Manley International Airport has been blocked on an intermittent basis by gun battles between criminal elements and police," the state department said.
"The possibility exists that unrest could spread beyond the general Kingston area."
Huge supportOur correspondent says the operation started around noon on Monday, when large numbers of soldiers were seen heading to the poor Tivoli Gardens area in west Kingston.
At the scene
Continue reading the main story
Overnight the central streets of this capital city echoed to the occasional boom of an explosion, or the sharp retorts of a gun battle.
Grey smoke billowed from two areas in the impoverished Tivoli Gardens neighbourhood.
There have been deaths. First-hand reports are hard to come by, but Jamaicans who have spoken to people living in the area say they are confined to their homes, and desperate to find a safe way out.
They are squeezed between the army and police on the one hand, and gunmen trying to protect the local big man - Christopher Coke, known here simply as Dudas.
The US government says he is an important drug trafficker and has demanded he be extradited to the States.
His loyal followers who admire his work for the poor here appear willing to do whatever it takes to make sure that does not happen.
Plumes of smoke could be seen coming from the area as helicopters buzzed overhead.
Security Minister Dwight Nelson said the soldiers, in a joint operation with police, had broken down the barricades around Tivoli Gardens and were conducting a house-to-house search for Mr Coke.
"The purpose of the operation is to execute the warrant for extradition and to detain [Coke] so he can appear in court," he told the BBC.
He insisted the police were "doing everything in their power to ensure the city remains safe".
But some reports said police had met heavy resistance from gunmen as they tried to enter Tivoli Gardens.
Residents in the area were advised to remain indoors but the streets were already quiet as Jamaica observed its Labour Day holiday.
Tivoli Gardens, the constituency represented in parliament by Prime Minister Bruce Golding, is the stronghold of Mr Coke, 41, who describes himself as a community leader.
His supporters see him as a man who is fulfilling a role that the government does not, such as giving them money to support their children.
Before the fighting, they staged protests and barricaded streets to stop his arrest and extradition.
In pictures: Jamaican unrest Profile: Christopher "Dudus" Coke Jamaica unrest: Your stories One resident of Kingston, Suzanne, rang the BBC to say Mr Coke provided a valuable service to the community - unlike the politicians.
"If your grandmother dies, you go to him and he buries her," she said.
"Okay, that's a fact. If you're a politician you're not going to find him, especially Bruce [Golding], you're not going to find him anywhere in the constituency, so you go to him [Dudus].
"You need your child to go to school - you go to him, and this is how it's been, this kind of patronage."
Life sentenceThe US justice department accuses Mr Coke of being one of the world's most dangerous drug barons.
He is said to lead a gang called the Shower Posse - owing to the volume of bullets used in shootings - and operate an international smuggling network.
He faces a life sentence if convicted on charges filed against him in New York.
The gang has also been blamed for numerous murders in Jamaica and the US.
The trouble started last week when Mr Golding said he was prepared to send Mr Coke to the US on drugs and weapons trafficking charges.
The decision reversed nine months of opposition to his extradition.
Mr Golding had argued that the evidence against Mr Coke was obtained illegally by intercepting mobile telephone calls.
But he changed his mind in the face of growing public discontent, and questions about his possible ties to Mr Coke.
He has denounced the unrest as a "calculated assault on the authority of the state that cannot be tolerated".
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