Following the clash, in-charge of Jait police outpost SI Jitendra Singh has been suspended.
Police, para-military forces were deployed in Nagala area.
"One person has been killed and two others, including a woman, has been injured in the clash," SSP N Padmaja said, adding the situation is under control.
Lokesh (36) died in the clash, while injured were rushed to hospital.
The clash broke out last night when cricket ball of some children fell into a house. The children were assaulted by members of the house, which was objected by another group.
The altercation became serious and soon the clash broke out.
Both the groups started brick batting and also used fire arms. In the incident, over over two persons, including in-charge of Singh were injured.