Police said two men known to each other had an altercation at an address on Ganter Street at Lammermoor near Yeppoon around 7am on Friday.
A 27-year-old man was allegedly chased from the address through a backyard to nearby Maida Street, where he was later found to have been stabbed.
He died on the footpath, despite the efforts of paramedics.
The other man, a 36-year-old from Berserker, allegedly fled the scene with a woman before being arrested later that day.
He was today charged with murder and will appear in Rockhampton Magistrates Court tomorrow.