Officials say rocks strewn by the eruption killed the victims, including journalist Anibal Archila, who was reported for local TV news Noti7.
Pacaya has produced various levels of activity over the past 49 years. Six large eruptions have occurred during that period.
The latest eruption deposited as much as 2 inches of ash over parts of Guatemala City, forcing officials to shut the main international airport.
The volcano is located just 15 miiles south of the Guatemalan capital.
Volcanic rock also fell on two evacuated villages, smashing car windshields.
Photo: Government of NIcaragua