Police said a group of eight students, including four girls, had gone from Sunabeda to Rani Duduma waterfall for picnic in the morning when the mishap took place.
However, while frolicking at the fall, two of them slipped into the flowing water and drowned. A team of fire brigade personnel recovered the bodies in the afternoon.
The deceased have been identified as Sujit Nahak and Kaibalya Rout of second year intermediate arts in Aeronautics College of Sunabeda, police said.