One youth is being held by police after violence flared in the flashpoint Whitewell area of north Belfast.
A number of residents living in Serpentine Gardens reported having windows broken as a loyalist gang attacked their homes.
A second person was later arrested in the Whitewell area for riotous behaviour.
Police moved into the area and spoke to community representatives in a bid to quell the trouble.
Brian Dunn, a community worker from the loyalist White City estate, says the trouble began when nationalists attacked homes in Gunnell Hill.
"There is a heavy police presence in the area and things are relatively quiet at the moment," he added.
The Northern Ireland Executive has been working on plans to set up a community action project to ease the tensions in the interface areas of troubled north Belfast.
First Minister David Trimble and Deputy First Minister Mark Durkan are expected to announce details of the project at the start of the week.