The 26-year-old Australian singer was spotted with the 31-year-old American rapper Saturday in Las Vegas after ending her engagement to Young in June.
Azalea and Montana attended Jennifer Lopez's residency show at Caesar's Palace before partying at Jewel nightclub at the Aria Resort & Casino, according to E! News. The "Fancy" singer performed a short set at the club.
"It's fun when there's something that comes up that you haven't done yet," she told the website. "I'm really excited to get in there [and perform]. A lot of my friends have been coming to Jewel the last couple weeks."
Azalea and Montana were seen chatting and dancing before leaving together at around 2:30 a.m. Sources told Us Weekly magazine the pair were friendly and appeared to have good chemistry.
"At multiple points, he leaned in to her and swiped his hand across her lower back and shoulder," an eyewitness said.
Azalea revealed in June she split from Young because she caught him cheating. The breakup came less than three months after Young's teammate D'Angelo Russell secretly recorded him discussing women he met while dating Azalea.