Parents grabbed their children and ran for their lives' after panic suddenly broke out at the resort in Orlando, Florida.
People hid inside shops and restaurants as police swept Downtown Disney for a shooter, but officers quickly realized that it was a false alarm.
'Apparently a fight broke out, shots may have been fired but no one was shot,' an eye witness said.
Footage taken moments after the scare shows parents huddling inside a restaurant with their children as a commotion appears to be going on outside.
Orange County Sheriff Office spokeswoman Deputy Lourdes Clayton told the Orlando Sentinel that the fight started on the second floor of the Bongos restaurant.
She said the confrontation created a loud noise that may have sounded like a gunshot.
Clayton added that one person was arrested in relation to the fight on a charge of disorderly conduct.
Reedy Creek Fire and Rescue Deputy Chief Eric Ferrari said it was a 'total false alarm'.
The fright came just a week after Disney announced that it was stepping up security measures at its parks in the wake of the recent terrorist attacks in Paris and California.
Visitors now have to go through metal detectors and the sale of toy guns - including squirt guns - has been banned. Guests cannot bring their own with them either.
Children over the age of 14 are no longer allowed to wear costumes, even on Halloween, Disney said.
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