Police say they were called to the scene in New Orleans' French Quarter at around 12.45am on Tuesday after reports of an assault.
The New Orleans police department said LaBeouf was reportedly becoming increasingly aggressive while at Royal Street Inn and Bar.
An employee tried to remove LaBeouf but once outside the actor allegedly hit a man "multiple times with closed fists".
Witnesses reportedly told police that LaBeouf left the area but later returned and continued to act aggressively.
Another man told officers the actor punched him on the nose, the police department said.
The actor had to be restrained until police officers arrived, and was later taken to hospital for "treatment of unknown injuries".
Police said that after being released from hospital the actor was arrested and charged with "two counts of simple battery".
LaBeouf rose to fame on the Disney Channel in the early 2000s, and is known for films including Holes, Fury, The Peanut Butter Falcon, and the Transformers franchise.
He has been somewhat absent from the Hollywood limelight after his former partner, musician FKA Twigs, accused him of being physically and emotionally abusive.
The British singer, whose legal name is Tahliah Barnett, filed a lawsuit in Los Angeles in December 2019 alleging that LaBeouf was a danger to women.
The 33-year-old from Cheltenham alleged the actor once slammed her into a car, tried to strangle her and knowingly gave her an unspecified sexually transmitted disease.
LaBeouf denied "each and every allegation" made by his former partner. The pair settled the lawsuit last June.
Representatives for LaBeouf have been contacted for comment.
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