Speed and alcohol were believed to be factors in the crash, state troopers said.
The incident unfolded shortly after 2 a.m. as a Whatcom County sheriff's deputy was pursuing a 2002 Volvo four-door being driven by a 17-year-old boy from Bellingham.
As the Volvo headed west on Lakeway Drive at high speed, the teenage driver lost control of the vehicle. The Volvo veered off the roadway to the north and crashed into a stand of trees, the State Patrol reported.
The 17-year-old driver and a 16-year-0ld Bellingham boy who was riding as a passenger in the car were both injured. They were taken to St. Joseph's Hospital in Bellingham for treatment.
The Volvo was totalled.
Possible charges are pending against the driver.