"During the follow-up investigation, we learned that there were 8 total victims, with two of those being deceased on the scene," Memphis police said in an updated statement posted on X, Reuters reported.
Police had earlier said that 16 people were shot.
One of the injured remains in critical condition, while one has been released, police said.
"This was a block party that was occurring without a permit", police said. The block party had about 200-300 people in attendance.
At least two suspects are being sought, CBS News said, citing Memphis Police interim chief Cerelyn Davis.
"We believe there are at least two individuals that fired weapons during this incident," Davis told CBS News.
Memphis Police could not be reached immediately for additional comment.