Officers say they were called to the Ponderosa Restaurant on Morton Boulevard just after six Saturday night.
A woman told police that a man approached her in the parking lot, asking for directions to Wal-Mart.
The man then allegedly struggled with her and took her purse.
Several witnesses say they saw the man leaving the area in a car parked at the Ace Clinque Medical Complex.
The victim and witnesses describe the man as being medium to tall height with sandy blonde hair. he was last seen wearing a black tee-shirt, Levi shorts and white shoes.
If you have any information, contact Hazard Police at 606-436-2222.