It happened around 4:05 a.m. along the 400 block of Buttonwood Alley.
The victims identified as 47-year-old Kimberly Smith and 18-year-old Andre Walker were shot by an unknown gunman.
Smith was taken to Reading Hospital Trauma for emergency surgery and is listed in stable condition.
Walker was taken to Paoli Hospital where he was treated and released.
Authorities are not sure what the pair was doing in the alley.
No arrests have been made and police have no motive on the shooting.
Anyone with information is asked to contact Pottstown Police at 610-970-6750.