A Kurdish family returns to their home near Arbil.

They're among dozens of families in the mostly Kurdish town of Makhmur to COME home.

Two days of heavy clashes between Islamic State militants and Kurdish Peshmerga fighters have put the town BACK in the hands of Kurds.

The logos of the Islamic State covered up now with new graffiti.

(SOUNDBITE) (Kurdish) MAKHMUR RESIDENT, SAMI ABDULRAHMAN, SAYING:

"The situation is very good now after the defeat of militants. People have started returning gradually, in particular over the past two days, the number of families that have returned has increased. "

Slowly, the town is coming back to life.

Shops and restaurants reopen, even as the midday heat keeps some customers away, and Peshmerga fighters patrol the streets.

(SOUNDBITE) (Kurdish) PESHMERGA OFFICER, MAJOR ISMAEL MURAD, SAYING:

"We have imposed control over the outskirts of city, the whole city is under the control of Peshmerga, there