Some 11 gunmen are dead following an intense shootout south of the border in Valle Hermoso.
It all happened off Avenida Independencia and Calle 16 de Septiembre on Saturday.
Mexico's Ministry of National Defense (SEDENA) reported it all started when soldiers were out on patrol and came across a group of armed men.
Witnesses told Action 4 News that the shootout lasted about two hours.
SEDENA officials said that 11 gunmen were killed in the firefight.
Two surviving gunmen were arrested while a wounded soldier was taken for medical treatment.
Soldiers reported seizing 73 assault rifles, bulletproof vests and thousands of rounds of ammunition.
The case remains under investigation by federal authorities.