Police say the shooting happened in the Greatwood Village neighborhood at Morningside and Briarbend Drive around 10:30 p.m.
Police are still searching the area for the shooter.
No one has been arrested at this time.
Police taped off a large area of the neighborhood as a crime scene.
Investigators spent a lot of time inspecting a van that belongs to one of the victims.
Sugar Land police say they were responding to a report of a suspicious vehicle but before they arrived, a shooting occurred at the same location.
One of the victims was taken to the hospital via Life Flight while the other was taken in an ambulance.
Authorities say both are expected to survive.
They believe one or more additional victims may have fled the scene.
Police did not say if either victim lives on the street where the shooting occurred.
Investigators are interviewing the victims for more information on the circumstances of the shooting and suspect.
"It's an amazing neighborhood, I've lived here my whole life, 25 years. Something like this has never happened anywhere around here, so it's a very big surprise that something like this has happened," one Greatwood Village resident said.
Follow Courtney Fischer on Twitter and Facebook.