A group of armed dacoits barged into a house in Raghunathpally Mandal of the district last night.
When the family members resisted their move to loot the cash and gold jewellery, the dacoits attacked four of them with knives, killing two persons on the spot, Jangaon Deputy Superintendent of Police K Surendhar said.
The deceased have been identified as B Lakshmi (60) and Akhila Nandini (9).
The two other family members - Radha (80) and Harshvardhan (5) - injured in the attack have been shifted to a hospital in Hyderabad for treatment, he said.