Ten Abu Sayyaf militants were killed in a two-hour clash on Friday after the army pounded their jungle lair.
Police seized a machete, a hunting knife and a homemade flag associated with Islamic state.
“People are afraid of what will happen if Boko Haram defeats the security forces,” said resident Adam Krenuwa.
Lebanese troops have been battling Syria-based Islamic militants in areas near the border.
Officials had uncovered plots that included kidnapping of foreigners and turning India into a “Syria and Iraq”.
When Canada is no longer reassuring, it’s all over
The Chief Minister said a case has been registered against those involved in flag waving incidents.
At least 11 Kurdish fighters and 16 Islamic State insurgents were killed in the overnight clashes.
Moscow suspects Washington’s ulterior motive is removal of its ally, Syria’s President Bashar al-Assad.
While the rhetoric against the ISIS has been consistent across the globe, their name hasn’t.
The IS popped up on the global radar in June by seizing assets in Iraq, but building on those early gains is proving difficult.
It is not the first time IS has carried out mass kidnappings in Iraq.
“We will be more forthright in the defense of our values,” the leaders wrote.
Saudi Arabia’s King Abdullah warned that the West would be the next Islamic State (IS) target unless swift action is taken.
US Secretary John Kerry urged the people of Iraq to remain calm amid the political and military upheaval.