The officers encountered a man with a firearm who opened fire near the base of Diamond Head, the Honolulu Star-Advertiser reported.
Sunday night, authorities said that two females and the suspect were unaccounted for after the shooting.
The two officers who were killed have been identified as Tiffany-Victoria Enriquez and Kekaulike Kalama, both of whom had less than 10 years each on the force, Honolulu Police Chief Susan Ballard said at a news conference.
She identified the suspect as Jaroslav “Jerry” Hanel.
Local media said the 68-year-old suspect was evicted in the morning before he stabbed his female landlord.
The man, who had a history of run-ins with police, allegedly opened fire on the responding officers, reports added.
A neighbor told The Associated Press she saw the landlord, Lois Cain, being loaded into an ambulance with knife wounds.
According to court records, the man living in Cain’s home was Hanel. Neighbors described him as mentally disturbed.
“Defendant does NOT have a Rental Agreement to occupy the premises and Defendant has no ownership interest in said premises,” read a complaint for eviction that Cain filed last week in court. “Despite repeated demands, Defendant has failed and refused to vacate the premises.”
Attorney Jonathan Burge has represented Hanel since 2015 in various disputes with neighbors, including temporary restraining orders that three obtained against him. Hanel, a native of the Czech Republic who used Czech interpreters in court, faced a hearing next week on a charge of misusing 911 services, Burge said Sunday.
Burge said he never knew Hanel to be violent, but that “he’s kind of a quirky guy and had problems.” Hanel believed the government was watching him and tapping his phone, Burge said.
“Maybe that’s what set him off,” he said of the eviction.
Hanel lived for free at the home in exchange for handyman work, Burge said.
"Our entire state mourns the loss of two Honolulu Police officers killed in the line of duty this morning. As we express our condolences to their families, friends and colleagues, let us also come together to help and support those who have been forever changed by this tragedy," Ige wrote.
The Bureau of Alcohol, Tobacco, Firearms and Explosives tweeted it was investigating: "ATF Agents responding to the active shooter situation in Honolulu."
The FBI also announced its officials were responding to the "active shooter" in Waikiki.
Ian Felix, a Honolulu resident and combat veteran with medical training, told the AP he happened to be walking by when he saw a woman lying on the ground with a pool of blood coming from her leg. He applied pressure until the first police officer arrived and put a tourniquet on it, Felix said. Moments later two more officers arrived, and Felix said he then heard two gunshots.
He and the officer picked up the wounded woman and carried her into a neighbor’s garage across the street, he said.
A home that the suspected gunman was believed to be inside caught fire and was quickly engulfed by flames.
Local media have not confirmed, but it’s believed that the suspect may be dead in the burning home.
The fire at the home since has spread to at least four neighboring homes and a parked police vehicle.
Police have closed several streets nearby, and the public has been asked to avoid the area.
Honolulu’s mayor, Kirk Caldwell, tweeted his deepest condolences: "This is an unprecedented tragedy for not only the City and County of Honolulu but the entire state of Hawai'i."
Fox News' Lee Ross contributed to this report.