Around 200 people in the eastern town of Heidenau jeered Merkel from across a road, shouting far-right slogans including "traitor, traitor" and "we are the mob," according to AFP.
Amid heightened tensions in the town over the opening of a new shelter for asylum-seekers in a former DIY store, Merkel's vice-chancellor Sigmar Gabriel had blasted far-right protesters as a "mob" during a visit to the town Monday.
Several drivers honked their car horns as they passed the spot where Merkel was standing, following calls to do so by extremist groups on social media.
Merkel was welcomed by Saxony state premier Stanislaw Tillich and the town's mayor Juergen Opitz and later held talks with refugees and social workers at the center.
The German leader on Monday condemned as "vile" violent demonstrations in Heidenau against refugees amid criticism she has failed to forcefully address anti-migrant sentiment.
For two nights in a row last weekend, clashes erupted between police and far-right thugs protesting the opening of the new center for refugees.