Far-right residents chased migrants to their hostel in violent clashes in eastern Germany on Wednesday.
Some 80 men and women were said to have clashed with about 20 migrants in Bautzen, which is east of Dresden - the home of anti-Islamisation movement Pegida.
The asylum-seekers are now said to be under police guard.
Reports suggested the clash was triggered by an incident on Tuesday night when a resident was hurt after a bottle was thrown.
Then, on Wednesday, fights broke out after residents accused asylum-seekers of taking over a square outside the central Kornmarkt shopping centre.
The BBC said witnesses claimed asylum-seekers threw bottles and wooden slates after being asked to move by police. When they eventually left the scene they were then said to have been chased by extremists.
An 18-year-old Moroccan asylum-seeker was taken to hospital after being hit in the face with a bottle, MailOnline reported, and one Bautzen resident was also seriously hurt.
Tensions have been mounting in Bautzen where locals in February cheered as a building set to house migrants was set ablaze.
The following month, President Joachim Gauck was verbally abused when he visited Bautzen to discuss the influx of refugees in Germany, the BBC reported.
Bautzen and the nearby town of Niedergurig are home to four asylum shelters.
Germany has seen a steady rise in attacks on migrants since the arrival last year of 1.1 million irregular migrants and refugees, something which may have also led to a surge in support for the anti-Islam AfD party.
According to the BBC, Germany’s federal police force says there have been 700 attacks on asylum accommodation this year, including 57 arson attacks.
Local mayor Alexander Ahrens has appealed for calm and said he would increase police patrols in the area so that residents could use the Kornmarkt again.
Writing on his Facebook page Ahrens said he was “angry and disgusted” by the incidents in recent days and condemned the violence.