The real-estate mogul countered on "Access Hollywood," saying he would sue O'Donnell and have someone seduce her girlfriend.
The following are excerpts from their tit-for-tat comments:
O'Donnell on Trump:
"This young girl, Tara Conner, how old is she? 20? 21. She went out and she was partying. She's from Kentucky. She went to New York and she was hanging out at all the parties, doing what Paris and Lindsay do — you know, dancing, whatever.
"And so he held a press conference on whether or not she was going to retain her crown.
"And then she started to cry, going 'I just want to thank Donald for giving me a second chance.'
"And there he is, hair looping, going 'Everyone deserves a second chance. I'm going to give her a second chance.'
"He annoys me on a multitude of levels. He's the moral authority? Left the first wife, had an affair, left the second wife, had an affair. Had kids both times, but he's the moral compass for 20-year-olds in America.
"Donald, sit and spin, my friend. I don't enjoy him. No, no, no, no.
"He inherited a lot of money, wait a minute, and he's been bankrupt so many times where he didn't have to pay. ... I just think that this man is sort of like one of those, you know, snake oil salesmen in 'Little House on the Prairie.'"
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Trump on O'Donnell:
"Well Rosie is a loser. Rosie’s been a loser for a long time. Her magazine failed. She got sued. She folded up like a tent. It was too bad.
"Everything about Rosie, and I watch her — and actually somebody sent me a clip of what she said — Rosie is somebody out of control who really just doesn’t have it. And she ought to be careful cause I’ll send one of my friends to pick up her girlfriend, and I think it would be very easy.
"Rosie’s first show had very poor ratings, and at the end she was doing very badly because the public got tired of her, and Rosie is somebody you get tired of.
"But her show did very poorly. Her magazine, I think it was called Rosie, was a total failure. Rosie is a failure.
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"Ultimately she will be a loser and you watch. Watch what happens to 'The View.' I will bet the ratings very shortly will start going down. People can’t stand watching her. She’s both unattractive inside and out. She’s got some big problems.
"Well you know what, I’m worth $5 billion plus — by a lot. And Rosie said Trump went bankrupt. I never went bankrupt. She’ll say anything that comes to her unattractive mouth. She said I went bankrupt. I’m worth much more than $5 million.
"She said lots of things. She said the Miss USA pageant was the small sister to Miss America. Miss America was thrown off the air. It’s on cable. It’s on a small cable network. And the Miss USA is getting great ratings and most importantly, it’s on network television. It’s on NBC.
"So she says things that come to her mouth. She’s not smart. She’s crude. She’s ignorant, and to be honest, I look forward to suing Rosie.
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"I’m going to sue her and I look forward to it. She’s really very dangerous for the show. Now the people on the show don’t like her, the people that watch don’t like her and let’s see what happens.
"She’ll find out. She’ll find out. Rosie will find out what we’re suing her for. She knows what we’re suing her for. It’s something I look very forward to. ...
"In the case of Tara I wanted to give her a second chance and I thought it was important and somebody like Rosie doesn’t take it seriously because Rosie doesn’t have sensibility.
"Well look, Rosie is a very unattractive woman. I’m saying something. I’m not a politician so I’m not running for office so I can say it. I’m mean, Rosie is a very unattractive woman but as unattractive as she is on the outside, she’s even worse on the inside, and she’s very lucky to have a nice girlfriend.
"I think you better hold onto your girlfriend Rosie because if you lose her, you’ll never be able to get another one."
The Associated Press contributed to this report.