Two children were rushed to hospital with gunshot wounds after shots were fired near a play park, before two cars were seen chasing one another.
Paramedics were called to Bushbury in Wolverhampton just after 3pm on Monday by shocked members of the public.
A 15-year-old boy and an 11-year-old girl, who had been in parkland off the road, both suffered gunshot wounds to their legs in the shocking incident.
West Midlands Police said shortly after the shots were fired, two cars - a suspected stolen black Mini and a grey Ford Focus - were seen in a chase in the area.
Officers later found the Mini abandoned and was seized for forensic teams to examine.
Both children in hospital are in a stable condition, it's been confirmed. Neighbours have reacted in shock following the incident.
Amit Baghral, 45, who lives near the scene, said: "It's terrifying our kids can be caught up in something like this while just playing outdoors.
"I don't know what's happening to this area. It's turning into a warzone and I don't feel safe letting my own children play out now.
"It shouldn't be like that, we're becoming prisoners in our own homes.
"I heard there was a car chase with police and they have got caught up in the crossfire.
"The girl was found screaming in nearby bushes, they have had operations to remove bullets.
"They are just kids. There are kids being shot in Wolverhampton. I just can't get my head around it. It's very scary."
Another resident, who asked not to be named, added: "It reminded me of that little girl in Liverpool.
"Mt grandson was playing in that park just minutes earlier and it could have been him.
"It could have been a lot worse but it's going to traumatise them both, you would imagine."
A spokesman for the force said: “We’re conducting quick-time investigations with officers making house-to-house enquiries and CCTV footage is being retrieved and reviewed.
“The scene remains cordoned off today (Tuesday) as forensic examinations continue and our teams are carrying out increased patrols in the area.
“Our officers are also liaising with partners in local schools as we understand how upsetting an incident like this can be.
“We know it is shocking, especially in a residential area, and it is a priority for us to establish what happened and who is responsible.
“We'd ask anyone who was in the Bushbury area yesterday afternoon to check their dashcam and doorbell footage as they may be able to assist with our ongoing enquiries.
“Anyone with information, who we've not yet spoken to, should contact us via Live Chat on our website or call 101, quoting investigation 20/393687/23.”
One witness told the Express and Star: “This is usually a nice, quiet neighbourhood and so it was surprising to hear what went on.
“We heard multiple shots, and then suddenly everyone in the road rushed out to the scene and helped in any way we could.
"I'd like to hope it is a one-off incident as like I said, it is usually quiet here.”
A spokesman from West Midlands Ambulance Service added: “We were called at 3.12pm to a shooting nearby to Shelley Road and Three Tuns Lane in Bushbury, Wolverhampton.
"Two ambulances, two paramedic officers, a trauma doctor and critical care paramedic and the Midland Air Ambulance from Cosford attended the scene. Upon arrival we found a boy and a girl with serious injuries that were not life threatening.
"They received treatment from ambulance staff at the scene before being conveyed to hospital for further treatment.”
There has been a spate of shootings in Wolverhampton in recent weeks.