Police said a gunfight erupted in the area, causing panic among residents gathered outside their homes for a Christmas celebration.
Video footage from the scene showed people suddenly running for safety as gunfire broke out. The victim was among those who attempted to flee and was hit in the shoulder by a bullet that reportedly pierced her lung.
According to individuals who were with the victim at the time, they initially believed that she had only been grazed. She was rushed to a hospital but was later pronounced dead.
The Manila Police District has declined to issue an official statement, citing the ongoing investigation.
Residents in the area said the gunfire was initially mistaken for loud firecrackers, but panic quickly set in when the shots continued in rapid succession, prompting people to run for cover.
Investigators later found bullet holes in a nearby wall and a tricycle, indicating indiscriminate firing in the area.
The National Capital Region Police Office said two individuals were involved in the exchange of gunfire and confirmed that the victim was struck by a stray bullet. It added that authorities already have persons of interest and are continuing efforts to identify and apprehend the suspects.
Police are urging anyone with information related to the incident to cooperate with authorities as the investigation continues.