The possible couple were spotted at Therapy, a gay bar in Hell's Kitchen, according to UsWeekly, and it's not the first time the One Direction dude has hung out there.
"Harry has actually been here a few times before," a bar source says. "He's just a regular customer when he comes in -- he gets a table and usually drinks a beer or cocktail on the side."
On Saturday night, which is "Gays Gone Wild" themed, he was with Kendall as well as some other friends, but kept it fairly low-key.
Once the deejay spun a 1D hit and guests began noticing the twosome, they bailed but displayed some PDA while exiting.
"He was holding Kendall's hand," a source says of the pair.
Do you think Harry and Kendall make a cute couple?
Want More? Like us on Facebook
Gallery | One Direction's Instagram: Best of Harry Styles