Security forces in the Jordanian city of Irbid traced the suspected Islamic insurgents to a residential building.
Troops opened fire after the men refused to surrender, according to Jordanian intelligence.
Officials say seven wanted men wearing explosive devices were killed in addition to a member of Jordan's security forces.
Weapons and explosives were also found at the scene.
Jordanian intelligence saying the men had ties to ISIS and planned attacks on military and civilian targets.
Amman is part of the US-led coalition targeting ISIS.