The shooting occurred in the 2500-block West 79th Street at about 12:08 a.m., police said. The victims were at a gathering when police said two male suspects opened fire inside.
A 26-year-old man was shot in the head and pronounced dead at the scene. Authorities have not released his identity.
"I just received a phone call saying that my son had been shot," said Michelle Chambers, victim's mother. "I was calling around trying to find out what's going on."
Chambers' 28-year-old son also remains hospitalized with a bullet wound to the stomach, one of seven other people injured in the shooting.
A 41-year-old woman was shot in the abdomen and transported to a hospital in serious condition.
A 22-year-old man was shot in the left knee and transported to Advocate Christ Hospital in fair condition.
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Another 28-year-old man was transported to Advocate Christ Hospital in fair condition after being shot in the leg.
A 32-year-old man transported himself to Little Company of Mary Hospital after being shot in the back.
A 27-year-old man transported himself to Advocate Christ Hospital in critical condition after being shot in the head.
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An eighth person self-transported to Roseland Hospital and was transferred to Advocate Christ Hospital after being wounded.
"People were just leaving getting in their cars, people pull up fast, people just take off trying to get to the hospital," said community activist Andrew Holmes. "All they wanted to know was who went where."
One neighborhood resident said he heard at least 15 shots ring out. The sidewalk, street and alley were littered with evidence markers numbered at last as high as 82.
Holmes is worried about the months ahead after this attack coming on the heels of 15 people being shot in the Park Manor neighborhood 12 days ago.
Surveillance video captured part of the mass shooting.
"I saw a bunch of people running in the alley and then I heard gunshots and I looked out and I saw a person shooting at a car and they ran into another car," said a neighbor, who asked not to be identified.
Terrified neighborhood residents said the memorial party at a dance studio was for a friend who had been the victim of gun violence.
"They were here having a good time. They were getting ready to leave. A young lady came to the door, came in and looked around, and she stepped out and shots just started," Chambers said.
Chicago police recovered a pistol with a long clip from an area dumpster and are still investigating the shooting.
"I'm tired. I'm so tired of this. I really am. It's killing me. It needs to stop," Chambers said.
Several weapons were recovered on the scene, police said. No one is in custody and Area One detectives are investigating.