Texas DPS says the Kaufman County Sheriff's Department, Texas Rangers and ATF were conducting the investigation near Mabank when they came across a blue pickup truck with three men inside.
A deputy tried to stop the truck, but the driver took off.
At one point during the chase, that truck broke down.
Texas DPS says the men got out of the truck and started shooting at officers.
They returned fire, killing one man and wounding another man.
The third man suffered non-life threatening injuries.
The shooting is now under investigation.