Members of the Daesh terror group attempted to sneak into the al-Nakhib area of al-Anbar province in the west, but were pushed back by popular forces, Hashd al-Sha’abi said in a statement on Sunday.
The Takfiri militants suffered major casualties during the counterattack, it added, according to Iraqi media.
Dozens of the terrorists also fled the battlefield, the report said.
Daesh has intensified its attacks in Iraq amid Baghdad’s call on the US to pull out its forces from the Arab country.
In a vote on January 5, the Iraqi parliament called for an end to the presence of all foreign troops, including Americans.
The vote came two days after the US military - acting on US President Donald Trump’s order - launched a fatal drone strike on senior Iranian anti-terror commander Lieutenant General Qassem Soleimani upon his arrival in the Iraqi capital at the invitation of the Baghdad government.
The attack also claimed the lives of Abu Mahdi al-Muhandis, the second-in-command of the PMU, and eight other Iranian and Iraqi people.
Washington has threatened sanctions should US troops be expelled instead of heeding the Iraqi parliament’s call to end the occupation of the country.