According to police reports the exchange of fire took place at around 9 pm, the Tagesspiegel reports.
Witnesses reported that several people were involved in the gun fight with shots being fired out of a car.
One of the bullets hit a 50-year-old woman in the leg as she stood on the street corner with her bicycle.
The woman was brought to a nearby hospital where she was operated on later in the night. Police confirmed on Thursday morning that the injuries are not life threatening.
Some of the shooters were able to flee in the direction of nearby Schöneberg in a dark limousine. The other participants also managed to escape.
The shooting occurred just a block away from a string of high-end designer shops like Gucci, Cartier and Chanel.
Police closed off the area on Wednesday night for further investigation and have already found several bullet casings.