We observe the radio galaxy PKS 1934-63 (at z = 0.1825) using MUSE (Multi Unit Spectroscopic Explorer) on the Very Large Telescope (VLT). The radio source is GigaHertz Peaked Spectrum and compact (0.13 kpc), implying an early stage of evolution (≤ 10 4 yr). Our data show an interacting pair of galaxies, projected separation 9.1 kpc, velocity difference ∆(v) = 216 km s −1 . The larger galaxy is a M * 10 11 M spheroidal with the emission-line spectrum of a high-excitation young radio AGN, e.g. strong [OI]6300 and [OIII]5007. Emission-line ratios indicate a large contribution to the line luminosity from high-velocity shocks ( 550 km s −1 ) . The companion is a non-AGN disk galaxy, with extended Hα emission from which its star-formation rate is estimated as 0.61 M yr −1 . Both galaxies show rotational velocity gradients in Hα and other lines, with the interaction being prograde-prograde. The SE-NW velocity gradient of the AGN host is misaligned from the E-W radio axis, but aligned with a previously discovered central ultraviolet source, and a factor 2 greater in amplitude in Hα than in other (forbidden) lines (e.g. [OIII]5007). This could be produced by a fast rotating (100-150 km s −1 ) disk with circumnuclear star-formation. We also identify a broad component of [OIII]5007 emission, blueshifted with a velocity gradient aligned with the radio jets, and associated with outflow. However, the broad component of [OI]6300 is redshifted. In spectral fits, both galaxies have old stellar populations plus ∼ 0.1% of very young stars, consistent with the galaxies undergoing first perigalacticon, triggering infall and star-formation from ∼ 40 Myr ago followed by the radio outburst.