The findings, which were announced on Wednesday, are similar to the December conclusions of the Los Angeles County District Attorney's Office that officers acted in lawful defense of themselves and others.
Kendrec McDade, 19, was shot last March after a 911 caller said McDade robbed him at gunpoint.
No weapon was found on McDade, and the 911 caller later admitted he lied about the gun.
The Pasadena Police Department said its review board considered tactics, patrol vehicle operation, radio communications and equipment before exonerating officers Jeffrey Newlen and Matthew Griffin.
More independent reviews by the FBI and the county's Office of Independent Review are pending.