Pakistani security forces have recaptured a police academy after eight hours of clashes with gunmen who seized the complex during a morning drill.
Military helicopters opened fire on the compound near Lahore as troops entered to confront grenade-throwing militants.
Pakistan's Interior Ministry said 18 people had been killed, including eight policemen and eight militants. Other reports put the death toll higher.
Nearly 100 people have been injured, the ministry adds.
The assault comes less than a month after gunmen attacked the Sri Lankan cricket team in Lahore, killing six policemen. Those gunmen escaped.