The terrifying incident is believed to have kicked off when Eugenie - accompanied by two friends - decided to stroll the streets of Phnom Penh at night.
It was on their late-night walk that a mugger attempted to grab Eugenie's bag, unaware that his target was a member of the royal family and therefore continuously flanked by security guards.
The mugging marked the first time in 10 years that any of Scotland Yard's elite protection officers had to respond a direct threat to a senior member of the royal family.
A Buckingham Palace source told The Sun: "They feared the incident was escalating out of control and took the decision to focus on the safety of their principal."
According to the reports, the two security guards rugby tackled the mugger, only to then be pelted with rocks by his accomplice.
Fearing for the Princess's safety, the guards let the thieves go in order to swiftly whisk Eugenie away from the scene.
We're glad Eugenie is ok!