Presidential Guard commander Col. Osman Omar Mohamed was killed and several others wounded on Sunday morning in Kabista, Galkayo compound the north-central Mudug region of Somalia.
The colonel was commanding forces that were conducting special operations against armed militias who were trafficking Alcohol but they were met with resistance from the dealers.
Also left dead during the confrontation was another bodyguard identified as Ahmed Yusuf Abdi according to a statement from the Puntland statehouse.
At least one person from the militias was killed and four others were wounded during the gunfight.
Puntland state leader Said Abdullahi Deni described him as an honest, hardworking and good and sent heartfelt condolences to the family and the people in a statement.
"May Allah have mercy on Colonel Osman he was honest, hardworking and good," read the statement in part.
Somalia is a predominantly Muslim country with strict regulations on alcohol use. The country has a long coastal line making it a crucial player in sea transport.
The country is suffering from insurgent activities by the al-Shabaab militants who are fighting the government in a bid to impose a strict interpretation of Shariah Islamic law.