About 80 Germans have clashed with a group of 20 asylum seekers in the eastern town of Bautsen.
Local reports say the Germans were mostly from far-right political groups.
They were heard chanting nationalist slogans.
Police officers who tried to intervene were attacked with bottles and sticks.
It is not the first time the town of Bautzen has seen racist incidents and clashes between migrants and right-wing extremists.
In February, onlookers celebrated as a fire ripped through a former hotel that was being converted into a shelter for refugees.
The local mayor has condemned the violence.