The incident happened Saturday afternoon near the intersection of Parker and Union streets.
Police say it started as a suspected stolen car stop, turned into a chase, and ended in a shootout with three armed suspects.
Police say an officer was critically injured and a person was killed in a shootout in Chester.
"The persons within the vehicle were uncooperative with police. Then there was an exchange of gunfire," said Chester Police Chief James Nolan. "To our understanding, someone in the car began shooting at police. Police returned fire."
When it was over, one suspect was dead, another was critically wounded, and a Chester Police captain lay injured.