Detectives say one man is dead and another is in custody after a fatal stabbing at a University Heights smoke shop Saturday afternoon.

Police say the stabbing stemmed from an argument at the Magic 7 Smoke Shop on West Fordham Road shortly after noon.

They identified the victim as 59-year-old Kenneth Fair, who they also say was homeless.

According to detectives, Fair got into an argument with the smoke shop manager and the manager hit him with a cane.

Police say Fair threw a punch back at the manager.

That's when they say another employee of the smoke shop identified as 54-year-old Vernon Gowdy came out and stabbed Fair in the neck.

Fair was taken to St. Barnabus Hospital where he was pronounced dead.

According to police, Gowdy lives just around the corner from the smoke shop.

The NYPD Crime Scene Unit placed markers on the ground for a cane and a slipper but as of Saturday night it was not known if that's the same cane that the store owner used to hit Fair.

Blood marks could also be seen in front of the store.

Police say it's unsure why Fair got into a dispute with the store manager.

Gowdy faces charges for murder, manslaughter and criminal possession of a weapon.