"I thought it was childish," Sanyu said while speaking to the media on Tuesday. "But, you know, girls will be girls."
The friction between Diana and Karungi started crystalising after the latter seemed to side with Ritah Dancehall who had been sent to jail by the former.
When Dancehall was arrested for defaming Diana, who had also asked her to pay Shs100 million in compensation, Karungi felt the matter had escalated so fast and it could have been handled differently.
Sanyu, who herself has beefed with Karungi, said they should either monetise their conflicts, or take it to the streets for hand-to-hand combat.
"Whatever they decide, I think it's a healthy competition. If they want to do a show about it, let them make some money, because they can handle each other... I think it will be a very healthy competition... [She believes they are at the same level musically]... Very similar... I think they can have a good competition... They can fight..." Sanyu, who is the president of the Uganda Musicians Association, said.
"There is no point in fighting... If you're going to do something, then do it... If you want to beat someone, beat them so it can end... If you can't fight, then shut up."
Sanyu, real name Cinderella Sanyu Munyonjo, was, however, quick to note that musicians don't have to be friends to work together.
"We don't need to be friends to unite over the same cause... You can still achieve whatever you want in this industry without being everyone's friend," she said.
Meanwhile, Sanyu, who is better known as Cindy, said that she also worked with Dancehall in the video of her groovy hit Boom Party.
"I worked with that dancer for Boom Party... I felt bad about what happened to her... I like her so much. She is an amazing dancer," she said.
Dancehall and Diana apologised to each other.