It happened just before 5 a.m. on the 3300 block of North Lee Street. Video posted to Instagram show the two victims at a late night barbecue in front of a home shortly before the shooting.
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Police said a witness called 911 and said the shooting might have been the result of an argument that happened after a car crash.
Investigators said one victim was shot in the arm and ran from the scene and ended up on the 100 block of East Ontario. The 26-year-old male was taken to Temple University Hospital in stable condition.
A 28-year-old man was shot multiple times and died at the scene, police said.
Those who knew the deceased victim said he was hanging out with friends Sunday night into Monday morning after having moved back to Philadelphia from Florida just days earlier.
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As of Monday afternoon, police had not released the names of the victims.
Police are looking for a silver or gray Ford Taurus or Mercury Sable that was seen being driven away from the scene shortly after the shooting by two men.
Anyone with information is asked to contact police.