Arson and clashes broke out between groups of two communities in Sehra on Friday even as police resorted to cane-charge, lobbed tear-gas shells and opened fire in the air to disperse them, officials said.
Mobs torched several vehicles and hand-pulled carts and vandalised property, police said adding, no one was injured in the clashes.
The situation was tense but under control, they added.
The cause of the trouble could not be ascertained immediately.
Senior officials have rushed to the troubled spot with reinforcements, they added.