The shooting happened at 71st and Paxton.
The incident began inside a grocery store. A woman was shot near there inside the store and police wound up shooting and killing one of the suspects.
"At or about 7:30 this evening at 71st and Merrill there was a police-involved shooting. One individual was shot. He is deceased. There was a gun recovered at the scene," said Mark Payne, Independent Police Review Authority.
Investigators combed the streets for evidence. Witnesses say officers chased several suspects in an alley before opening fire and killing one person. Neighbors heard a hail of gunfire.
"I had a policeman chasing a guy through my alley. He came and a policeman called him and I heard the rest of the gun shots," said Joshua Campbell, witness.
The shooting began down the street at a convenience store. Paramedics transported three people including a woman in her 60's who may have been hit by a stray bullet. Customers rushed into BK's Barbecue to escape the gunfire.
"In the military, you hear a shot you hit the ground. You just start ducking. You don't care where it come from. You just start getting out of the way," said Eddie Robinson, witness.
None of the people who were shot have been identified yet. They were transported to two area hospitals, Christ and Northwestern. Authorities say the woman was shot it the leg.