Kurdish People's Protection Units (YPG) announced on Wednesday they had recaptured a district in Tal Abyad that ISIS took control of on Monday.
The YPG captured the border town of Tal Abyad at Turkish border and its areas from ISIS on Jun 16, with the support of US-led air strikes.
Local sources claim the clashes are still continuing inside Tal Abyad.
Tal Abyad is an oil-rich city located 65 kilometres east of Kobane and is also a key city between Turkey and northern Syrian province of Raqqa.
The seizure of the town by YPG, the military wing of the outlawed PKK's Syrian affiliate Democratic Union Party (PYD), means they effectively control some 400 km of the Turkish-Syrian border.
The Syrian Observatory for Human Rights (SOHR) stated that most of the town was under YPG control, with only a handful of ISIS militants.
YPG now controls the Turkish-Syrian border between Syria’s northeastern corner and east end of town of Jarabulus.
More than 18,000 Syrians crossed into Turkey in the past two weeks fleeing the violence in northeastern Syria as clashes between YPG and ISIS escalated.
"5,291 people, who entered Turkey, were registered today. 1,413 of the refugees are women while 2,287 are children," said the Turkish Prime Ministry Disaster and Emergency Management Presidency (AFAD) in a written statement on Monday.
Turkish soldiers lent assistance to the people, many of whom were elderly, females or children.
A Turkish official and humanitarian employee said the US-led air strikes were partly responsible of the recent displacement of the Syrians from the border area.
However, the US Embassy in Turkish capital of Ankara, denied the accusations of harming civilians, saying they were only targeting the militants.
The PYD is the only Syrian Kurdish Party that is not under the umbrella of the Kurdish National Assembly - Syria, or Kurdnas, formed through the efforts of Kurdish Regional Government President Massoud Barzani.
Turkey, the world’s biggest refugee hosting country, houses an estimated 1.8 million Syrian refugees, including around 200,000 from Kobane, more than any of Syria’s other neighbours.
According to UN estimates,over 220,000 people have been killed in Syria since the beginning of the war which started as an uprising and later descended into a complex civil war.
More than 6.7 million people have fled the country, while millions of others have been displaced internally.