Two other labourers who were sharing the same room were found unconscious and have been admitted to a hospital, police said.
A room heater was found in their room and apparently the two men would have died due to noxious gases coming out of it.
"Two labourers were found dead and two others were hospitalised. The victims were working in a factory in Industrial Estate Lassipora in Pulwama," a police spokesman said.
The deceased have been identified as Shabu Mian and Rupan.
Police has started an inquest proceedings under section 174 CrPC to ascertain the cause of their death.