The clashes followed protests against a government plan to construct military barracks in the Lice district on Saturday.
According to witnesses, the Turkish soldiers open live fire against the demonstrators in an attempt to put an end to the protest.
Kurdish protesters Ramazan Baran, 24, and Abdulbaki Akdemir, 50, died in hospital following the clashes.
Five were also hospitalized for injuries, including two Turkish soldiers.
Six soldiers were wounded earlier this week as they were trying to remove protesters who were blocking the road.
The protest came as the government of Prime Minister Recep Tayyip Erdogan is holding peace talks with the banned Kurdistan Workers' Party (PKK) to end a 30-year conflict.
In March, PKK leader Abdullah Ocalan declared a historic ceasefire after months of negotiations with the Turkish government. In return, the PKK demanded amendments to the penal code and electoral laws as well as the right to education in the Kurdish language and a degree of regional autonomy.
Diyarbakir has been a scene of protests against the Turkish government for the past two days.
NTJ/MB