Amid heavy gun battles, African Union peacekeepers and Somali government forces hit a rebel stronghold in Mogadishu on Monday.
Regaining control of the heavily populated Bakara market is critical to flushing the al Qaeda-affiliated militants out of Mogadishu.
But analysts warn the fight is likely to be hard and messy.
Several strategically important streets have been seized from the al Shabaab insurgents.
Among these - Wadnaha Road. It's seen as a critical supply route into the market.
[Mohamed Hassan, Deputy Military Commander]: "The fighting continues into the third day as you can see and we captured Wadnaha Road and more bases from this radical group of al-Shabaab."
Residents report African Union tanks deployed at the southern edge of the market.
Military helicopters have also been seen flying low over rebel bases in the past few days.
The African Union mission in Somalia, or AMISOM, says it will not battle its way through Bakara.
Instead they'll try to squeeze the insurgents out to protect traders and their property.
At least 22 Al Shabaab operatives are said to be dead with scores injured. The AMISOM forces have suffered one fatality and eight injured peacekeepers.
[Major Paddy Ankunda, AMISOM Spokesman]: "So, 22 al Shabaab were killed, we lost one soldier and eight, were wounded."
Considered by Washington as al Qaeda's proxy in the region, al Shabaab is fighting to topple the U.N. backed government.
Somalia has been plagued by violence and anarchy since dictator Mohamed Siad Barre was ousted in 1991 and has had no effective government since.
Western security agencies say the country has become a safe haven for Islamist militants, who are using it to plot attacks across the region and beyond.
Source: New Tang Dynasty Television
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