More than 100 anti-racism protesters faced off against a small band of masked men wearing England flags.
Scores of police officers kept the two groups apart last night as a counter-protest - organised by ten community groups including Stand up to Racism - set off from East Park, through Above Bar Street, and into Grosvenor Square.
Chants of 'racists off our streets' were volleyed at the much smaller rival group in Grosvenor Square.
Cheers went up as a man draped in an England flag was pepper sprayed by police and detained amid an altercation.
Hampshire police later confirmed a 40-year-old man from Eastleigh was arrested on suspicion of affray.
The protests were held after days of tension following Y-Axis Immigration Services in Grosvenor Square was named on a list of supposed sites being targeted by anti-immigration protesters.
Shops, gyms and restaurants closed early on Wednesday, with Mint Lounge and Moura's in Bedford Place boarded up in anticipation of ugly scenes.
Despite anti-racism demonstrators and a handful of opponents meeting - kept separate by a line of police - there was no repeat of riots seen elsewhere in the country.
Tensions flared but did not spill out into violence.
Addressing the crowd before marching off, Nikki Walters from Southampton Action said: "We are here, we are saying no to hate in Southampton."
She told the Echo: "It’s fantastic to see well over 100 people turn out in Southampton this evening.
"We are here to show the fascists and people trying to terrorise our city that they are not welcome.
"Southampton does not tolerate hate."
The protests in Southampton come amid a wave of riots across the country following the deaths of three young girls in Southport.
Anti-racist Ella Davey, 26, said: "The use of the deaths of three little girls to justify racism, looting and thuggery is disgraceful and not what represents our city.
"Southampton is such a diverse and multicultural city, I’m really proud of what was achieved today.
"This protest was set up in response to social media users claiming there would be a far right demonstration. Today we showed them exactly what Southampton thinks of racism."
Last night's protest saw some members of both groups covering their faces.
Marchers, who set off from the Peace Fountain, carried banners saying 'fascists belong in the dustbin of history' and 'Nazis off our streets'.
Around four police officers took one man to the ground in Grosvenor Square when the two groups met.
The smaller outnumbered group was on the receiving end of a water bottle thrown at them at one point.
Officers kept an eye on the groups from the multi-storey, with many more police on the ground.
One of those in the Grosvenor Square group was Dawn Thiselton, 59, who was waving an England flag.
She told the Echo she was born and raised in Southampton and had turned out to 'peacefully demonstrate'.
She said: "I am definitely not a racist. I’m born and bred in this country and I believe in our country's honour.
"My son is a Royal Marine who has fought for this country.
"I have come here today to fight for the country's sovereignty.
"The impact of untracked immigration has crushed our country. You can’t even get a doctor’s appointment. We are here today to peacefully demonstrate that we have had enough."
Around ten groups had united together to form the march last night.
Among attendees was Southampton Test MP Satvir Kaur, who was joined by fellow Labour councillors John Savage and Eamonn Keogh at the demonstration.
She told the Echo: "I think tonight is a real sign of solidarity and unity from Southampton communities.
"I’ve been talking to families who were scared to send their children out to play and business owners who are concerned about their livelihood.
"What is so important to remember is that the people who cause violence and only want to cause destruction do not belong in our city and do not represent Southampton.
"The strength of Southampton is our unity and diversity."
People also reacted on social media to the protests.
On X, Ralph Palmer posted: "Southampton is a working class, diverse, multiracial city with a proud history of standing up to fascism.
"Tonight, 100s of anti-fascist protesters have faced down a handful of sad little men draped in flags of a country that they disgrace. Proud of my local city."
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