Police said dispatchers received a report of an attempted robbery in the 700 block of Emerson Street just before 10 p.m. Wednesday.
Officers arrived on the scene but were unable to locate the suspects.
According to police, three women were walking together in the 700 block of Emerson Street when two men stepped out from a nearby storefront's alcove and approached the women.
One of the men pointed a handgun at the women and demanded their property, police said.
The three women separated and each ran to nearby open businesses and asking to call police.
The suspects fled the scene and were last seen running south on Emerson Street toward Homer Avenue, police said.
Police said the women described the armed suspect as a Hispanic man in his 20s who is between 5 feet 3 inches and 5 feet 6 inches tall. He reportedly had a medium build and was wearing dark clothing and a covering over his face. The second suspect was described only as a tall male with a blue bandanna covering his face, police said.
Detectives are investigating the incident and looking into any possible connection between this crime and a strong-arm robbery that occurred on Monday night in the 200 block of Hamilton Avenue.
Anyone with information about this crime may contact Palo Alto police at (650) 329-2413. Anonymous tips can be sent via email to paloaltotipnow.org or via text message or voice mail to (650) 383-8984.