Lawrence hit the headlines after expressing her disgust that "young sex sells" recently, which was taken as a pot shot at Miley who is famed for twerking and wearing skimpy outfits.
Cyrus split from Lawrence's The Hunger games co-star Liam Hemsworth earlier this year and the movie stars' close relationship is also causing problems.
"Miley feels like Jennifer always tries to act like a feminist in all her interviews, but then poses in a revealing dress to promote her film. That seems so fake to her," a source told British magazine Heat.
"Miley's mad as hell. She thinks Jen is such a hypocrite - she basically wears nothing but body paint in X-Men - how is that not using sex to sell? And then, she was all over Liam on the red carpet."
When Lawrence and Hemsworth first started work on The Hunger Games movies he was in awe of her, which is said to have irritated Miley. Although the singer tried to bond with Jennifer, she apparently feels the actress didn't make much effort.
"Liam kept telling Miley how great Jennifer was, so that got her back up, Then, when they met, Miley felt like Jennifer focused all her attention on Liam and made no effort with her," the source said.
"Miley always suspected that Jennifer didn't like her and she suspected that she would side with Liam over her. These pictures of them getting so close have made her see red."