Prohibitory orders were clamped in Talen town near Rajgarh on Sunday after two persons were killed and 20 injured in a clash between members of two communities.
The death toll in the clash that broke out near a place of worship on Saturday night rose to two as a person succumbed to injuries in hospital, Superintendent of Police DK Arya said.
One person was killed on the spot on Saturday. Police fired in the air and used batons to disperse the mob after the clash.
At least 20 people were injured in the clash and rushed to a hospital. Two of the injured were referred to a hospital in Bhopal in a critical condition, Arya said.
A total of 35 people were arrested for engaging in violence.
Police, which also lobbed teargas to control the mob, said they seized several weapons, including swords and live cartridges, during a door-to-door search conducted this morning.
Prohibitory orders under Section 144 of CrPC were clamped in Talen and Rapid Action Force personnel were patrolling its streets. Additional forces were deployed in the area to keep the situation under control, police said.
The incident came five days after communal violence claimed three lives in Narsinghgarh town in the same district.