They say the man approached the woman outside of her townhouse complex in the 4800-block of Carol Street, which is near Dempster and Skokie, at noon on Saturday.
The incident has alarmed residents, who say the area is normally quiet.
"I was shocked. Just didn't expect something like this to happen here or with family members, you know," said Sergey Girel, the victim's son.
Girel said his 58-year-old mother Raisa was unloading groceries from her SUV, which was parked on the street.
That was when she was approached by an unknown man.
"He was trying to get her purse. And she didn't give it back to him, and decided to fight him. And he had a knife apparently," said Girel.
He says his mother was cut on the arm and stabbed on the upper back.
The attacker then grabbed her purse and car keys, and drove away in her vehicle.
Girel says his mother- who is not one to give up easily- was able to bite the man on the arm before he took off.
A neighbor who had heard the commotion rushed to the victim's aid. Soon, investigators were at the scene, combing the area for evidence.
The victim received stitches at a hospital and was released. She is expected to be OK.
Still, the attack and carjacking has raised concern in the neighborhood.
"You wouldn't expect someone to do that to an old lady, and she's helpless. So I really do hope they catch the guy," said Jeremiah Mall, neighbor. "It's pretty quiet around here. Nothing like this really happens around here. I'm really surprised."
"Once she was starting to fight him, she realized that it's just easier to give it up. And all those things can be replaced, and your life can't be," said Girel.
The stolen vehicle is a silver 2004 Toyota Highlander with license plate number 7118755. The suspect is described as a tall, slim white male, 20 to 25-years-old, wearing a black jacket with a hood.
Anyone with information is asked to contact the Skokie Police Department immediately.