The woman was driving an SUV west in the 3000-block of East 106th Street at about 2:40 a.m. when police said she struck a pole.
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Chicago police initially said the woman was pronounced dead at the scene, and no other injuries were reported.
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Later Monday, CPD said a 5-year-old girl and an 8-year-old boy were ejected from the vehicle, and taken to a hospital in Indiana by a "known male."
They were later taken to Comer Children's Hospital in critical condition, police said.
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Detectives from the Major Accident Investigation Unit are investigating.
Authorities have not released the woman's identity.