Those victims are Troy Wimberly, 38, of the 4900 block of Chestnut Street and Crystal Shadding, 43, of the 7100 block of Theodore Street.
They were shot around 1:40 a.m. inside the Corral Bar in the 5200 block of Market Street.
Wimberly was rushed to the hospital but pronounced dead a short time later. Shadding was pronounced dead at the scene.
There was no immediate word on the motive as the investigation continues.
Police said they found a trail of blood leading out of the bar. Initial thoughts were that the blood belonged to a third victim, but investigators now believe it belongs to the shooter.
The search continues for the gunman. He is described as a heavy-set man with a beard who is likely in his 30s.
Anyone with information is asked contact the Philadelphia Police Department at 215-686-TIPS (8477) or at phillypolice.com.