Parts of the historic district were under 24-hour curfew as the military and police mounted a large-scale operation.
Turkey's state-run news agency Anadolu said two soldiers and one police officer died in Friday's fighting.
In a written statement, Turkey's military said over 200 members of a "separatist terror organization" had been killed, referring to the outlawed PKK, or Kurdistan Workers' Party.
The fighting between the security forces and the PKK, which wants autonomy for Kurds, flared anew in July, shattering a fragile peace process.
More than 40-thousand people have died in the three-decade-long conflict.
The increased strikes in Diyarbakir came as the Turkish military also pushed ahead with its cross-border artillery shelling campaign against positions in Syria of the YPG (People's Protection Units), a Syrian Kurdish militia group.
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