Footage captured by a bystander shows the incident unfolding Saturday morning near Benares Street and Ryerson Avenue.
Witnesses say two landscapers were confronted and grabbed by who appears to be immigration agents as they tried to take them into custody. As neighbors began to come outside, the landscapers were released and the agents drove away.
In the video, an agent inside a car was seen pointing a gas canister at people on the street who were filming.
Neighbors say one of the landscapers has a green card and has lived in the U.S. for 40 years. The other has a valid work permit that he was carrying on him at the time.
It was one of several incidents involving immigration agents that were reported in Downey over the weekend.
Immigration enforcement reported at Downey Home Depot
Meanwhile, thousands of people filled downtown Los Angeles Saturday for an anti-ICE and "no wars" protest, with organizers saying the demonstration was largely peaceful before ending in tense confrontations between protesters and police outside the federal detention center.
The protest drew thousands into the streets, eventually turning chaotic as L.A. police officers in riot gear came face to face with demonstrators near the Federal Building. LAPD said one person was detained on suspicion of battery against a police officer.
Anti-ICE demonstrations grow in wake of Minneapolis shooting
Video from the scene shows an officer and a demonstrator being taken to the ground as a crowd rushed toward them.