Emergency services were called to a business on Marrickville Road in Marrickville after reports of gunshots just before 2pm on Friday afternoon.
Police arrived to find two men suffering gunshot wounds.
They were both treated by paramedics before being rushed to hospital.
“One man is believed to be in a critical condition, while the other is believed to be in a stable condition,” NSW Police said in a statement.
A crime scene has been established while police work out the circumstances of the shooting.
Officers are also investigating whether two car fires at Marrickville and Dulwich Hill are linked to the shooting.