The terrifying moment two young men are ambushed by a group of hooded thugs armed with a giant machete has been captured in shocking new video. 

Emergency services were called to the Universal Restaurant on Lygon Street, Carlton, about 11.45pm on Wednesday after panicked New Year revellers reported a stabbing.

A group of up to seven masked and hooded men was seen throwing punches at the two victims in CCTV obtained by 7News. 

A shout of terror can be heard before one of the young men was struck multiple times, as a woman runs from the violence unfolding on the busy strip. 

One of the attackers, wearing a black hooded jumper, was then seen brandishing a large machete at a young man lying on the pavement. 

The two injured men managed to escape by stumbling into a nearby shop. 

A 20-year-old Heidelberg West man and an 18-year-old New South Wales man, sustained serious injuries and were transported to hospital.

Ambulance Victoria said the two males had been stabbed in the chest and were transported in a critical condition to Royal Melbourne Hospital.

It is understood a group of up to seven males, armed with knives and machetes, set upon the two men about 11.45pm on Wednesday

Emergency services were called to the Universal Restaurant on Lygon Street, Carlton, about 11.45pm on Wednesday after reports of a stabbing from panicked revellers

Last year, Victorian Premier Jacinta Allan (pictured) introduced a state-wide ban on the weapons in September as the crime crisis involving knives escalated in Melbourne

Witness Ali Kassem said his sister-in-law had taken control of the confronting scene and put pressure on one of the men's wounds before paramedics arrived.  

'The boys that did the stabbing, they were out to get someone,' he told 7News. 

'Shame. Shame on you, boys. That's disgusting. If you're man enough, talk it out.'

The owner of Juiced Lygon said he had served one of the victims just minutes before he suddenly appeared in front of him, bleeding from an injury to his chest. 

'I recognised him immediately. A few minutes before this happened, we served him and his friends juice. He wished my sister a happy new year when she handed him the tray' he told the Herald Sun. 

'Not even five minutes later, he was bleeding out in front of me.'

Another witness recalled begging paramedics to 'come quickly' as she tended to one of the victim's injuries. 

'I kept saying to paramedics on the phone, what am I supposed to do? Help me, help me, please quickly, somebody get here quickly. He's going to die, he's just a young boy,' she told the publication.