Shares of the Bolingbrook, Ill., company at last check rose 6.4% to $262.92.
Target, the Minneapolis department-store giant, will create a 1,000-square-foot shop-in-shops for Ulta next to its beauty section.
"In partnership with Ulta Beauty, we are able to expand our growing beauty business,” Target Chairman and Chief Executive Brian Cornell said in a statement.
The big-box retailer initially plans to start with 100 stores and expand over time.
Shop-in-shop concepts are a way for retailers to offer customers new experiences and a wider selection of brands.
Customers will also be able to shop online through Target's app or website and get free shipping and same-day delivery for Ulta's products.
"Ulta Beauty at Target reflects further evolution in our omnichannel strategy, rooted in unlocking the potential of our physical and digital footprints," said Ulta Beauty Chief Executive Mary Dillon.
Ulta Beauty on March 19 had temporarily shuttered its 1,264 stores due to the pandemic, The Wall Street Journal reported.
In late July, the company said it would permanently close 19 stores, while most of its other stores reopened to in-store shopping.
Ulta plans to open 30 new stores this year as opposed to the previously planned 60.
Ulta posted better-than-expected quarterly results, including a surge in online sales, as consumers continued to scoop up their favorite brands of makeup and accessories.
For the second half of fiscal 2021, Ulta has said it expects to incur around $35 million to $40 million of costs for personal protective equipment and covid-19-related matters.
Last month, denim brand Levi's said it would expand its presence at Target, to 500 stores from 140, by next fall.
Shares of Target were up 1.7% to $157.58.