The shooting happened as the bus traveled in the 3400-block of State Street on Monday around 12:14 a.m. in the Bronzeville neighborhood.
An altercation broke out onboard the #29 State Street bus as it traveled southbound near 34th street.
The driver reported that a passenger pulled a gun and fired on another.
A man in his late 20s was shot in the chest and was taken to the hospital, where he later died.
The CTA driver was shot in the right shoulder and was taken to the hospital, he is expected to be okay.
At last check, the bus driver was undergoing surgery and was expected to recover, according to Keith Hill, the President of ATU Local 241.
"We don't come to work to be assaulted, shot at," Hill said. "The sad part is my membership don't feel safe at work. We want our own police department. No one can secure us better than us."
The shooter fled on foot after the bus crashed into a curb, police said.
Dorval R. Carter, the president of the Chicago Transportation Authority released the following statement:
"It is absolutely reprehensible that a CTA bus operator was injured due to a firearm being discharged on board a southbound #29 State Street bus earlier this morning, following a disturbance between two parties. No one should experience this kind of violence, especially while merely performing their duties serving the public as a bus driver. Regardless of circumstances, the CTA has zero tolerance for gun violence, and will work with law enforcement officials to aggressively pursue upgraded charges against those found responsible for these actions."
Police and the CTA will review surveillance footage.
No one is in custody. CPD Area One Detectives are conducting a homicide investigation.