The deceased were identified as Shafiqur, 22, son of Mobabark Ali and Abdul Malik, 55, son of Warish Mia of the same village.
Quoting locals, police said, Lebas Mia and Elaich Mia were in loggerhead for long over a land.
As a sequel to previous enmity, supporters of the duo attacked each other around 9:30 am that left two people, belonging to Lebus group, dead on the spot and 40 others from both groups injured.
Later, some of the injured were taken to Moulvibazar 250- bed hospital and others to Sylhet Osmani Medical College and Hospital.
On information, police rushed in and brought the situation under control, said Rashedul Islam, additional police super of the district.
Additional forces have been deployed to avoid further trouble, added Rashedul.