The face-off occurred after an audience member asked if it was time to define new rules surrounding migration to avoid community conflict, leading Senator Lambie to reaffirm her position that anyone that supports sharia law be deported from Australia.
Ms Abdel-Magied interjected, asking the Tasmanian senator if she knew what sharia law was, before the two fought over its definition and women's rights.
"My frustration is that people talk about Islam without knowing anything about it and they're willing to completely negate any of my rights as a human being," Ms Abdel-Magied said.
"Islam to me is the most feminist religion. We got equal rights well before the Europeans. We don't take our husbands' last names because we ain't their property."
Senator Lambie replied forcefully, saying there was only one law for Australians.