One person died when police opened fire on a crowd, and an auto-rickshaw driver was stabbed to death in the clashes in the predominantly Muslim district of Vejalpur.
At least another eight people were injured - most of them Muslims.
A curfew had been imposed in the area following violence on Sunday in which one person was killed and at least 20 others injured, including five police officers.
Since February, Gujarat has experienced India's worst Hindu-Muslim clashes in a decade, with more than 1,000 people, mostly Muslims, losing their lives.
From the newsroom of the BBC World Service
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