The troops exchanged artillery shells at disputed border areas adjacent to the Preah Vihear, jeopardising calls and proposals for permanent peace.
"Cambodia lighted up fireworks at 6.40 p.m. and then fired artillery and rockets into Thai side. We retaliated in the same proportion," said army spokesman Col. Sansern Keowkamnerd.
Local residents in villages along the border rushed to seek shelters and bunkers to protect themselves from the shells. "A lot of shells flying over our heads _ in and out _ but we don't know where they landed," a villager told The Nation via telephone from a bunker in Si Sa Ket's Roung subdistrict.
About 10 Thais were injured, eight of them soldiers, initial reports say.
Cambodian troops reportedly launched artilleries and rockets from their stations at Phu Ma Khua hill and Chong Don Aou to many Thai villages along the border.
There were reports of Thai planes flying near the disputed area but were not fired at or involved in military action. Cambodian TVs' reports about fighting portrayed Thai troops as aggressors, sources said.
The area of fighting was about 3 kilometres from the historic Preah Vihear temple, a UN World Heritage Site which is the source of both countries' border conflict.
Earlier Sunday, Prime Minister Abhisit Vejjajiva called for national unity amid border tension and mounting pressure from nationalistic People's Alliance for Democracy which has been demanding tough stance against Cambodia over territorial disputes.
During his live TV program on NBT, Abhisit was reacting to the resolution of the People's Alliance for Democracy to oust him from office.
Abhisit said he wondered why the PAD would intensify the protests to force him out of office when he shares the same stand with the PAD regarding to the border disputes.
Abhisit explained that his government was the first government that was opposed to Cambodia's unilateral registration of Preah Vihear Temple as a world heritage site.
He said he was also against the use of the 1:200,000 map cited by Cambodia to carry out border demarcations.
"PAD, this is the first government which is clearly opposed to the [1:200,000] map and registration of Preah Vihear as heritage site so I am surprised why you came out to demand the government's ouster," Abhisit said.
"My government shares the same stand with you so I wonder for what you are making your campaign."
The prime minister also urged the public to listen to information of all sides instead of listening only to the PAD leaders.
He said his government could not comply with the PAD's demand to withdraw Thailand from the Unesco World Heritage committee.
Abhisit said if Thailand pulled out from the committee, the committee would listen only to the Cambodia's side and Cambodia might be allowed by go in to manage the part of the land that belongs to Thailand.
"And I cannot tolerate that," Abhisit said.
Abhisit also noted that keeping the memorandum of understanding with Cambodia on border disputes would benefit Thailand more than annulling it as demanded by the PAD.
Abhisit said the MOU, which was signed in 2000, helped return calm to the disputed border area after two days of clashes.
Abhisit said without the MOU, troops of the two countries could have clashed everyday.
To criticisms that MOU could not have prevented the clashed on Friday and Saturday, Abhisit replied: "I'll say the calm has returned partly because of the MOU".
He also insisted that Thailand has not lost its territory to Cambodia as alleged by the PAD.
"I have no interests in exchange for giving away our land to foreigners," Abhisit said during his live TV program on NBT.
"Had I done it, i should not only be removed as the prime minister but I should also be expelled from the country," Abhisit said
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