"There are prohibitory orders in some parts of the city [Srinagar] as well as in some other districts, but curfew has been lifted from the valley," Muzaffar Ahmad, a police official, told the Reuters news agency.
"The situation generally remained peaceful across Kashmir valley, barring a few incidents of stone pelting."
The curfew was imposed on Wednesday.
'We want freedom'
During a 24-hour suspension of the curfew on Saturday to allow residents to celebrate the annual Miraj-un-Nabi festival which commemorates the Prophet Muhammad's night journey to the heavens, clashes broke out in three areas of Srinagar.
Police used tear gas and batons to disperse rock-throwing protesters.
Elsewhere in the city, thousands of demonstrators shouting "We want freedom" and "Blood for blood," followed Mirwaiz Umar Farooq, a separatist leader, through the streets.
"Our civil disobedience and peaceful marches will continue until India withdraws its military and paramilitary soldiers from populated areas," Farooq, the chairman of the All Parties Hurriyat Conference, said, according to The Associated Press news agency.
Residents said security forces have killed 15 people during recent rallies.