The men were both knifed during a brawl outside a house on Pensnett Road, Brierley Hill, in the early hours of Thursday.
The fight is believed to have broken out after a group of men attempted to steal cannabis plants from the house at around 3.30am, West Midlands Police said.
One of the men died at the scene and the other was driven to Russells Hall Hospital where he was pronounced dead.
GALLERY: Forensic teams at murder scene
A car also crashed into parked vehicles on nearby Wilson Road during the violence which broke out near Brockmoor Community Centre.
A murder investigation has been launched and police remained at the scene throughout Thursday, with a large area around the crime scene cordoned off and several cars and houses examined.
One man was arrested on suspicion of conspiracy to rob.
Interactive map of the area:
Forensic teams were examining the house where the cannabis factory was found on Pensnett Road, where the front bay windows were smashed and a sword was reportedly recovered.
A collision investigation unit was at the scene and an officer marked out a set of tyre tracks running across the grassland which separates Pensnett Road and Wilson Road.
A blue forensic tent was also in place close to a damaged section of wooden fencing on Wilson Road, near a car which had its passenger-side door open and was covered in a blue sheet.
Homicide Unit Inspector Nick Barnes, said: “We believe this property was deliberately targeted by a group of men who knew it was being used to cultivate cannabis.
"Witnesses have reported the property being attacked, windows broken, and men running away carrying plants.
“In the ensuing disorder two men have suffered fatal knife wounds.
“We’re appealing for anyone who was in the area at the time and witnessed the disorder or people or vehicles leaving the scene to get in touch.
“I’d also like to hear from any motorists who were in the area at the time and have dash cam footage as they also may have recorded something important.”
One nearby resident said she was woken up by noise at about 3am.
The woman, who did not wish to be named, said: "It sounded like gunshots, then I heard shouting, running up and down, and later sirens."
Meanwhile Patricia Oakley, 78, said it was a "shock".
She said: "I got up about 3am, I thought it was an ambulance as they come a lot, I didn't look outside though.
"Then in the morning I saw the big police cars outside.
"It isn't safe for anyone to go out now."
Eileen Pirie, 77, added: "It's terrible. The dog woke me up and I opened the window and saw the blue flashing lights.
"I'm apprehensive now. It's terrible all these drugs kids are taking.
"I never see police around here anymore."
One ambulance, two paramedic officers and a MERIT trauma doctor were sent to the scene.
A West Midlands Ambulance Service spokesman said: “On arrival, crews discovered one patient, a man, who had suffered serious stab wounds.
"He received specialist trauma care from ambulance staff at the scene, who also administered advanced life support.
“However, despite their best efforts it sadly became apparent nothing could be done to save him and he was confirmed dead at the scene.
“Around the same time, one ambulance crew and two paramedic officers helped to treat a second man who had been driven to Russells Hall Hospital, he too had suffered serious stab wounds.
“Sadly, despite the best efforts of ambulance and hospital staff, nothing could be done to save him and he was also confirmed deceased.”