More than 600,000 Rohingya have arrived in Bangladesh since a military crackdown in Myanmar in August triggered an exodus, straining resources in the impoverished country.
Police said the attack by the Rohingya man was linked to a family dispute. It is the latest of a string of crimes in the area which have alarmed local authorities.
"We've stepped up security after these incidents," deputy chief of Cox's Bazar district Afruzul Haq Tutul told AFP.
The district's state prosecutor Mamtaz Ahmed told AFP that crime had recently increased in the area.
The UN has described Myanmar's crackdown on the Rohingya as "textbook" ethnic cleansing, and many of the refugees who arrive in Bangladesh bring horrific stories of brutalities including murders, rapes and arson.
This has prompted an unprecedented outpouring of sympathy in Muslim majority Bangladesh.
But Rohingya now outnumber Bangladeshis by two to one in the two main refugee towns of Teknaf and Ukhia in Cox's Bazar district, and local tensions are rising.
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