Police say it all started when a man jumped out of a stolen pickup truck near McCall and Skelton.
Investigators are still collecting evidence. Police say the suspect fired first and Action News has learned he has an extensive criminal history.
Lori Garcia and her family were headed to dinner when they narrowly avoided crashing into a Selma Police car.
"As we were turning there was a truck that almost hit us we got scared, as we turned onto the street, the cop car almost hit us," Garcia said.
They watched while one of the men in the truck tried to jump out.
"A few seconds later we heard 8-10 gunshots, and we were scared so we backed up and started running in their houses," Garcia said.
It was only after their neighborhood turned into a crime scene that people slowly came out of their homes, crowding into the street to see what happened.
The Selma Police Chief says the truck they were following was stolen when the driver jumped out and the officer went running after him.
"The suspect went down the alley into a backyard as the officer went into the backyard he fired upon the officer, the officer returned fire," Selma Police Chief Myron Dyck said.
The officer was not injured. The chief says the man they were after is no stranger to law enforcement and has been in prison.
They're still looking into his background and people in this neighborhood are wondering if it's time to move.
"We can't come outside anymore because we're afraid to walk down the neighborhood," Adela Flores said.