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The fighting between the Guards and "defenders of the revolution" against President Ali Abdullah Saleh began on Saturday morning and was still ongoing in the evening, witnesses said.
The clashes broke out when the Guards tried to enter a new area in the north of Taez, they said. Six houses have been destroyed in the fighting.
Taez has been a centre of protests calling for the departure of Saleh, who has been in power since 1978.
The long-time president was wounded by a bomb on June 3 and is recuperating in Saudi Arabia.
Copyright AFP (Agence France-Presse), 2011