The two, who squared off Monday over terrorism and troops, exchanged words Wednesday about politics and international conflicts, E! News reported.
O'Donnell, leaving the show at the end of June when her contract expires, challenged Hasselbeck on the phrase "the enemy is in Iraq," asking whether Iraq ever attacked the United States.
"No, I'm saying al-Qaida," Hasselbeck said.
When co-host Joy Behar tried to keep the discussion from escalating further, and O'Donnell offered why she wouldn't engage in a debate.
"Here's how it gets spun in the media: Rosie -- big, fat, lesbian, loud Rosie -- attacks innocent, pure, Christian Elisabeth. I'm not doing it," O'Donnell said.
Hasselbeck replied that she didn't understand why it was her fault "if people spin words that you put out there or phrases that suggest things."
Despite the on-air fireworks, the two remain friends, Hasselbeck said.
"I honestly think, I believe that we are mature women who can resolve (this)," Hasselbeck told "Extra.""I hope we can. I would hope that a disagreement or a heated debate wouldn't be the end of a relationship."