The 8-day-old air and ground offensive in the South Waziristan tribal region is a key test of nuclear-armed Pakistan's campaign against Islamist militancy. It has already spurred a civilian exodus and deadly retaliatory attacks.
Washington has encouraged the operation in the northwest because many militants there are believed to shelter Al Qaeda leaders and are also suspected to be involved in attacks on Western troops in Afghanistan. The U.S. military has also kept up its own missile strikes in the lawless tribal belt, including a suspected one that killed 22 Saturday.
The battle for Kotkai town was symbolically key because it is the hometown of Pakistani Taliban chief Hakimullah Mehsud and one of his top deputies, Qari Hussain. It also lies along the way to the major militant base of Sararogha, making it a strategically helpful catch.
The fight was intense, taking several days and involving aerial bombardment, officials said.
The majority of homes in the town were converted into "strong bunkers" and it also was home to a training camp for suicide bombers, army spokesman Maj. Gen. Athar Abbas told reporters. Troops had begun ridding it of land mines and roadside bombs.
"Thank God, this is the army's very big success," Abbas said. "The good news is that (communications) intercepts show that there are differences forging among the Taliban ranks. Their aides are deserting them."
Abbas said some of the fleeing Taliban have shaved their beards and cut their hair to try to blend in with the civilian population. Taliban spokesmen could not immediately be reached for comment.
Three soldiers and 21 militants died in the most recent fighting in the region, the army said. Because it has blocked access to South Waziristan, independently verifying the data is all but impossible.
The government has forged ahead in South Waziristan despite a wave of violence that has put the nation on edge. Some 200 people have been killed in a variety of militant attacks across the country this month.
"They are making tall claims of conquering Waziristan in a few weeks, but we think this is not doable even in five to six years," said Azam Khan Mehsud, who hails from the Makeen area.
Others noted that Pakistan had failed at least three times before to wrest the region from the Taliban and said they feared the damage the army might cause.