The incident happened early on Friday when a joint squad of the CRPF and state police was out for an operation in Lakheri area of Giridih district.
Officials said a heavy exchange of fire took place between the two sides and CRPF's second-in-command H K Jha was seriously injured in the encounter.
"The officer later succumbed to his injuries. No other injuries have been inflicted on the forces side," a senior officer said.
During the operation, two Naxalites were held with some arms and ammunition and a search operation has been launched in the area, the official said.
Image: Security personnel engage in a gun fight with Naxal in Jharkhand
Photograph: Reuters