The incident happened around 4 p.m. in the 44100 block of 48th Street West.
Witnesses and police say it started when the suspect was seen out in the front yard, possibly drinking and making loud noises. A neighbor who was out putting up her Christmas lights went to see what was happening.
Officials say that's when the suspect began chasing the woman around with a knife. She tried to use a ladder to fend him off but he kept going at her, officials said.
Another neighbor tried to intervene and the suspect allegedly went after that person.
Deputies showed up and asked the suspect to drop the knife, but say he refused, and then threatened to use the blade on them.
That's when a deputy opened fire, striking the suspect.
The suspect was transported to a hospital in critical condition and was expected to survive.
The suspect's identity has not been released.