Police said fighting broke out among a group of 150 people, armed with knives, spears and clubs known as nulla-nullas, on the settlement’s sporting oval.
A vehicle was also set on fire during the fracas. Yuendumu is north-west of Alice Springs.
Police called for reinforcements shortly before 1pm (CST) over what they described as a family feud.
They said the brawl involved members of the Nyirripi community, who live about 150 kilometres from Yuendumu.
A community spokeswoman said calm had since returned, after police escorted a group of people back to Nyirripi.
Numerous weapons were seized including knives, spears and nulla-nullas during a search of vehicles.
Between eight and 12 people were treated for minor injuries at Yuendumu Health Clinic before being released.