The Churchgate Area Association (CAA) is battling the Dog and Partridge, in Crown Street, Bury St Edmunds, which has applied for longer opening hours.
Elizabeth Godfrey, a CAA member who lives in Hatter Street, said: "We have had people urinating on our door and there are people breaking windows and swearing, shouting and fighting at night," she said.
Kate Hamilton, assistant manager at the pub said: "The residents have got the wrong end of the stick. We don't want to be a loud pub; we don't even allow bad language."
She said the variation applied for by Greene King, would only allow them to sell alcohol until midnight on Thursdays to Saturdays.
They are also applying for a public entertainment licence for occasional karaoke, live music and other special events, such as New Year's Eve.
Pubs can now apply to continue serving booze after 11pm under a new law which takes effect in November and which could see 24-hour drinking.
Judges have warned that this will increase drink-fuelled violence and rape, while the Government hopes the move will prevent trouble by stopping people spilling out of the pubs at the same time.
Cllr David Nettleton, whose ward includes Station Hill where two of the town's nightclubs are based, said: "The situation is bad already. We already have people wandering around drunk and disorderly in Bury.
"The changes to these licensing laws aren't going to make much difference. If people go out to get ratted they are going to get ratted," he said.
He called for tougher penalties for people caught drunk and disorderly.
Meanwhile, 85 per cent of the 360 licensees in St Edmundsbury have successfully applied to convert their licence ahead of a deadline last Saturday – and 165 of these have applied to vary their licence.