Police said it happened in the Bucktown neighborhood's 2200-block of North Elston Avenue at about 4:30 a.m.
A 63-year-old man, who has a valid FOID card and CCL, was inside of a business when a burglary suspect, identified only as male, confronted him, police said. Both the CCL holder and the suspect took out guns and exchanged gunfire.
Police said the suspect then got into a waiting sedan and fled the scene in an unknown direction.
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The victim was not injured, and it is unclear whether the suspect was injured, police said.
No one is in custody and Area Five detectives are investigating.
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