The incident occurred around 2:30 a.m. in the 100 block of East Allegheny Avenue.
Action News was told that the two woman were arguing when it became physical and one pulled out a knife.
Police say a 37-year-old woman was stabbed eight times in the chest and neck.
She then staggered around the block looking for help before collapsing in the 200 block of East Wishart Street.
Medics rushed her to Temple Hospital and she is listed in critical condition.
Police arrested a 47-year-old woman a short time later and she faces numerous charges.
The names of the victim and suspect have not been released.
