The two young men, both aged 17, were the driver and front seat passenger on a Vauxhall Astra that left the road and struck a tree at around 8:30am this morning.
The crash happened on the Cladymilltown Road, in Co. Armagh.
A second passenger inside the vehicle was also injured and taken to hospital with non life-threatening injuries.
It is believed that adverse weather conditions at the time may have played a part in the fatal accident.