It happened around 6:30 p.m. on the 1900 block of South Bancroft Street.
Authorities tell Action News that the incident started as a domestic dispute Tuesday morning when the suspect allegedly pointed a handgun at the victim.
According to Philadelphia Police Sergeant Eric Gripp, officers went to serve an arrest warrant around 6:15 p.m. and gunfire erupted.
Gripp says detectives and SWAT officers spotted the suspect through a partially open doorway at a property on South Bancroft Street and asked the man to come outside.
That's when Gripp says the man fired three shots at SWAT officers.
One SWAT officer returned fire and shot the man multiple times, according to police.
The unidentified suspect was transported to an area hospital where he later died.
Chopper 6 over officer-involved shooting in South Philadelphia
No officers were injured in the incident.
The SWAT officer who returned fire will be placed on routine administrative leave while the investigation continues, police say.