Emergency services were called to reports of a serious assault on Gray Road in the Hendon area of Sunderland shortly after 3.15pm on Monday.
The North East Ambulance Service (NEAS) attended the incident and requested assistance from the Great North Air Ambulance.
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As huge police presence could be seen as officers cordoned off the road on Monday and have since arrested a 32-year-old man on suspicion of producing a controlled Class B drug.
Detective Sergeant Jon Wade is urging any members of the public with information relating to the incident to come forward and speak to police.
He said: “This is clearly a serious incident that has resulted in two men being taken to hospital with suspected stab wounds.
“We are determined to find out the circumstances surrounding the assault and ultimately ensure anyone responsible is brought to justice.
“A number of enquiries are now ongoing and we ask anyone with any information to get in touch with us as it could be crucial in our investigation.”
Officers remain in the area to carry out enquiries and offer any reassurance to residents.
Anyone with information is asked to contact us via the ‘Tell Us Something’ page of the Northumbria Police website or by calling 101 quoting NP-20220110-0554.