The authorities in Ethiopia's eastern Somali region say government soldiers have killed 85 suspected al-Shabab militants and captured many more in its territory.
The national army has joined regional forces in an offensive against the Somalia-based militants who last week attacked two villages near the border.
Witnesses have told the BBC that the militants crossed from Somalia into Ethiopian territory in several vehicles and there was intense fighting.
A senior leader of the militant group has called for more attacks.