Another man is also hospitalized after the shooting.
In a social media post, Action News learned funeral arrangements are set for Monday, with a viewing scheduled for 11 a.m. in Philadelphia, followed by an afternoon prayer.
Meanwhile, the search continues for the gunman.
The shooting happened outside an after-hours lounge in Southwest Philadelphia early Sunday, according to police.
Surveillance video obtained by Action News shows a commotion outside the lounge before the shooting. The video appears to show a police vehicle driving past moments before a scuffle breaks out. Gunshots are then fired, and people run from the area. One person appears to return to the scene, bend down, pick up an item and then run away in the opposite direction.
Police responded just before 4 a.m. to the 7200 block of Elmwood Avenue, where they found two people suffering from gunshot wounds.
"Upon arrival, they found two individuals who were shot. One 29-year-old is an off-duty Philadelphia police officer assigned to the 12th district," Philadelphia Police Commissioner Kevin Bethel said.
Police identified the second victim as a 35-year-old man, who was also shot multiple times.
Both men were taken to Penn Presbyterian Hospital and underwent surgery, but Barry died from his injuries. Family members and fellow officers gathered outside the hospital as the officer's body was escorted from the facility and placed into an ambulance.
"We are here now to support his family and the men and women of the 12th district," Bethel said.
Investigators said it remains unclear what led to the shooting.
"At this point, it occurred outside the lounge; we don't know what preceded the incident to cause the shooting," Bethel said.
The shooting happened outside an after-hours lounge that residents say has operated in the area for several years.
"Just an after-hours bar people go there get a couple drinks, party there, that's about it," one person in the area said.
According to the city Department of Licenses and Inspections property search, inspectors have issued several violations at the property since 2021, including for not having a proper zoning or use permit to operate an after-hours lounge.
Authorities said they are investigating the location and why the officer was there.
"We'll be doing a complete investigation of everything involving, leading up to this incident, and what transpires related to this location," Bethel said.
Police said a handgun and several spent shell casings were recovered at the scene. The suspect remained at large as of Sunday, and authorities are asking anyone who witnessed the shooting or has video to contact investigators.