Paramedics, police and firefighters were all scrambled to the blaze which happened on a grass verge in front of houses in Sneyd Lane on Sunday morning.
At least one of the men involved is believed to have been badly burned after the fire broke out at 10.50am. An air ambulance was sent and landed on grass next to Mossley Fields Surgery on nearby Fisher Road.
One of the injured men is then reported to have been airlifted to hospital while the other was taken for treatment by road.
It is not yet clear how the blaze started or what materials were involved in the flames but West Midlands Police said the cause was not believed to be suspicious.
A neighbour who lives close by said: "I heard a bang, a kind of small explosion and came out of the house and saw two men on the floor on fire and a lot of people around them."
The road was initially closed as emergency services dealt with the incident and fire investigators, two fire crews and police officers remained at the scene into the afternoon.
Charred clothes could be seen behind a taped-off cordon on a patch of grass in front of a row of terraced houses.
A spokesman for the force said: " We were alerted to reports of a fire on a grass verge on Sneyd Lane, Bloxwich, at around 10.50am.
"Two people have been injured and taken to hospital.
"We’re assisting fire colleagues with a road closure and scene management while they carry out their investigation.
"There is nothing to suggest it is suspicious at this stage."
The number 31 and nine National Express buses were diverted via Bell Lane, Broad Lane and Creswell Crescent while the road was shut.
West Midlands Fire Service said they were unable to comment on the fire due to the police investigation.