The incident occurred at around 1:14 a.m. local time (05:14 GMT) in the city of Muncie, the Star Press reported.
The deceased was a 30-year-old man, some of the victims suffered critical gunshot injuries and were transferred to medical facilities by helicopter, according to the police.
The shooting reportedly occurred at a large party in the area of S. Hackley Street and E. Willard Street in Muncie. Because of the "nature of the incident" and the "number of victims" multiple agencies were requested to respond to the scene.
According to one report, the IU Health Ball Memorial Hospital in Muncie received 19 patients from the shooting.
Muncie officials said there was no immediate threat to the public following the shooting, and added that the investigation was ongoing.
"We are heartbroken to learn of this terrible incident, and our deepest condolences go to the families of the young man who was killed and everyone who was injured," the Muncie officials said.