Goleta residents Jesus Coronado, 20, and Carter Chavez, 25, were arrested Friday after allegedly shooting a handgun into the air from a backyard on San Milano Drive.
After receiving a 911 call of gunfire in the area, deputies quickly identified Coronado and Chavez as suspects.
Neither of them was in possession of a firearm when authorities arrived, prompting deputies to serve a search warrant on the residence.
Inside they discovered a .22 caliber handgun, which had been reported as stolen from Mercer County in Missouri.
Coronado and Chavez were both charged with negligent discharge of a firearm, among other offenses, and are being held in jail on $35,000 bail.