The shooting happened around 12:45 a.m. in the 7000 block of Hollywood Boulevard, near the Hollywood Walk of Fame.
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Police showed up to the scene to find a wounded teen on the sidewalk with a handgun next to him, bleeding from multiple gunshot wounds. He was brought to a local hospital and pronounced dead.
Investigators say the incident began when the deceased teen and another armed male suspect confronted a group of people near Hollywood Boulevard and Sycamore Avenue.
That group - believed to be unarmed - scattered on foot, running away down the street. It's believed the second male suspect and possibly the deceased teen fired at the group.
There are no indications anyone in the other group was armed or fired back at the two suspects in the confrontation.
"It does not appear there was an exchange of gunfire," LAPD Officer Drake Madison said. "It appears as though the victims were just running away from the two suspects. But again it's still an early part of the investigation."
Detectives are still looking into how exactly the deceased teen was struck by gunfire.
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No one was in custody in connection with the incident. Police are still looking for the other armed individual.
Witnesses told police that they saw four men running from the location after the gunfire.
Hollywood Boulevard was shut down in both directions between Orange Street to La Brea Avenue as police conducted an investigation at the scene. No estimate of when the street would reopen was given.
LAPD shifts about 200 officers to Hollywood as residents report increase in crime
LAPD shifts hundreds of officers to Hollywood
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The shooting comes almost three weeks after the Los Angeles City Council approved funding intended to address a recent increase in crime in the area.
The council on Aug. 10 authorized $216,000 from the office of Councilman Mitch O'Farrell, who introduced the motion, to the Los Angeles Police Department's Hollywood Division to add additional officer shifts. O'Farrell represents the Hollywood area.
According to a statement released by O'Farrell's office at the time, there has been a 75% increase in homicides and a 35.6% increase in shots fired so far this year compared to last year, while robbery has gone up by 19.4% and theft has jumped by 24.7%.
City News Service contributed to this report.