One of the victims, Terry Carter, died of his injuries while the other, Cle "Bone" Sloan, was seriously injured.
The 53-year-old appeared in court to enter the no contest plea while wearing an orange jail jumpsuit.
The deadly confrontation occurred on January 29, 2015, outside a hamburger stand in the Los Angeles suburb of Compton, following a heated argument on the set of a commercial for the film "Straight Outta Compton".
Rap mogul Marion "Suge" Knight pleaded no contest in a Los Angeles court on Thursday to a charge of manslaughter for a 2015 hit-and-run killing, accepting a 28-year prison sentence under a deal with prosecutors days before his murder trial was to begin.
The vehicle is then seen zooming forward, back into camera range, running over Sloan a second time, and then running over a second man, Carter, a former rap music label owner.
During Thursday's hearing, Knight answered Judge Ronald Coen's questions, loudly and quickly saying "no contest" when the judge asked for his plea.More news: Mass games planned for Korea summit, nuke progress unclear
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The incident, which was captured on surveillance video, took place following an argument over Straight Outta Compton, a biopic about the pioneering rap group NWA.
Knight, who at the time was out on bail in a robbery case, fled the scene but was later arrested.
Under the plea deal, he is set to be sentenced to 28 years in state prison on 4 October.
Knight and N.W.A. member Andre "Dr. Dre" Young founded the wildly popular Death Row Records label together in 1991. In February of 1997, Knight was sentenced to five years in prison for violating his probation by partaking in a fight outside of a Las Vegas hotel earlier in the night before Shakur's death, which remains unsolved.
He originally faced life without the possibility of parole if convicted.