The provincial government media office in a statement said the hideout was used by the militants of the group as a launch pad for the attacks in Jalalabad city.
The statement further added that the operation was conducted late on Wednesday night in the vicinity of Kandi Bagha area of Chaparhar district.
At least one ISIS group member was killed during the operation and two others were arrested alive while six other suspects were also rounded up on charges of having links with the terror group, the statement added.
In the meantime, the National Directorate of Security (NDS), says the Special Forces have also confiscated and destroyed some explosives while three Ak-47 rifles were seized.
The source further added that the local residents and the security personnel have not sustained casualties during the operation.
Nangarhar has been among the relatively calm provinces since the fall of the Taliban regime in 2001 but the anti-government armed militants have been attempting to expand their foothold in this province during the recent years.
However, the Afghan armed forces are busy conducting counter-terrorism operations to suppress the militant groups.