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In a video shared on social media by Sanyuka T.V. reporter Isaac Kawalya, aka Kaiyz, Pallaso is seen punching Skin who is standing against the wall.
Pallaso keeps telling him to respect him. Alien Skin, real name Patrick Mulwana, didn't fight back.
It's not yet clear how the fight started.
Update
On Tuesday evening, Pallaso and Alien Skin were filmed involved in what appeared to be a scuffle.
The proceeding events have been comical.
Pallaso, Skin and some members of their camps have spoken out.
Taking to Facebook, Skin said Pallaso "got what he wanted" and called people to go support Pallaso's Love Fest Concert, which will be held on June 9 at the Lugogo Cricket Oval.
Alien Skin's self-styled bodyguard Champion Ogudo described what Pallaso did as stupid.
He said Skin went to check on Pallaso thinking they were buddies only to be welcomed by a gang ready to thump him.
That Skin was only accompanied by two people.
He wondered if they wanted to kill him. He said Pallaso's show may not happen because they'll look for him and teach him a lesson.
Clement Yiga, another member of Skin's camp, said Pallaso and Skin have always been friends.
That when he invited him, they wanted to escort him, but Skin stopped them. He said when Skin arrived he found a gang of about 50 people with weapons like knives ready to attack.
He said Pallaso has launched a war with the ghetto boys. He also wasn't happy that their musician was involved in stunts to promote a concert.
Speaking to Sanyuka T.V., Alien Skin denied that the fight happened and urged people to support Pallaso's concert.
On his part, Pallaso claimed that when he was rehearsing Alien Skin came with about 150 people to interrupt him.
Pallaso apologised for what happened.
Police arrested both artistes after the incident, but Alien Skin was seen fleeing arrest after jumping off a police truck.
This is not the first time musicians are involved in such outrageous incidents ahead of their concerts.
Just early this year, when Jose Chameleone was preparing for his Gwanga Mujje concert, he was filmed flogging a Boda Boda rider. They would later forgive each other.
Watch the video below: