The local Star Tribune reported that looting was widespread from Sunday night through early Monday morning and spread north and south of Minneapolis's state capital.
Officers used tear gas and rubber bullets against the crowd and repeatedly ordered about 500 people to disperse as protesters chanted Wright's name and climbed on the sign at the city's police headquarters.
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National Guard troops arrived just before midnight as demonstrators targeted commercial facilities and other businesses in the downtown area in rage.
Brooklyn Center Mayor Mike Elliott issued a curfew order until 06:00 local time Monday, and all school buildings, programs, and activities were closed.
In a statement, Elliott noted that "our entire community is filled with grief following the death of 20-year-old Daunte Wright by an officer. Our hearts go out to his family and all those in our community affected by this tragedy."
The actions in the city's Brooklyn Center area heightened tensions just hours before the resumed trial of Derek Chauvin, the former officer accused of murdering George Floyd in May 2020, was set to resume in a courtroom less than 20 kilometers from the scene of the incidents.
Prosecutors are preparing to bolster their case this week against Chauvin, based on testimony from police officers and eyewitness descriptions.
Floyd's death 10 months ago sparked waves of protests and violent demonstrations in dozens of U.S. cities, heavily suppressed by law enforcement.
Participants in the protests demanded legal action against police brutality, particularly towards African-Americans across the country.