Representatives for the 44-year-old star insisted on Thursday reports she frightened diners while carrying a knife at the eatery were completely blown out of proportion.
The response comes as renewed scrutiny continues to surround Spears following her recent DUI case and years of intense media attention linked to her conservatorship battle and public behaviour.
A representative for Spears issued a statement to People magazine on Thursday, hours after reports circulated online alleging the singer had caused alarm during a dinner at Blue Dog Tavern in Sherman Oaks on Wednesday evening.
TMZ first reported witnesses claimed Spears had been "screaming" and "barking" while dining with two companions, with one customer alleging she walked through the restaurant carrying a knife.
Responding to the allegations, Spears' representative said: "Britney was enjoying a quiet dinner with her assistant and bodyguard."
The statement continued: "She was simply telling the story about how her dog was barking at the neighbours. At no point did she put anyone in danger with a knife. She was cutting her hamburger in half."
"This constant attack on everything that she does and this is exactly what happened 20 years ago when the media tried to depict Britney as a bad person. This is ridiculous and it needs to stop now."
Entertainment journalist Jeff Sneider posted on X during the evening claiming he had been dining near Spears.
In a follow-up post, he wrote: "She just left and everyone in the restaurant turned and started talking about it. An INSANE dining experience. One diner feared for her life. This is not a joke … ."
The incident emerged days after Britney shared a series of Instagram posts describing herself as being on a "spiritual journey".
One upload featured the singer holding a baby snake while discussing symbolism, luck and healing.
"Went to the pet store with my kids and look at what what a beautiful baby snake this is," Spears wrote on Instagram.
"Snakes are symbolic of good health, higher consciousness, and pure luck …
"I'm so damn thankful to my friends and so many new beautiful people I have met through my spiritual journey … all a blessing in disguise."
The latest controversy follows Spears' March arrest in Ventura County, California, on suspicion of driving under the influence.