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Two people were shot while dining outside of Peter Luger steakhouse on Thursday night, sources said.

The victims were sitting outdoors at the restaurant in Williamsburg at 9:45 p.m. when a gunman opened fire, sending diners and staff ducking for cover outside the revered steak house, according to law enforcement sources.

A suspect was arrested two blocks away on Bedford Avenue, the sources said.

A gun was recovered at the scene.

The violence started as a dispute between two groups at the eatery. The gunman then pulled out a weapon and opened fire outside, sources said.

The shooter apparently missed his target and hit two uninvolved diners.

Both victims are expected to survive, the sources told The Post.

Diners on the sidewalk and inside the steak house attempted to shield themselves as the gunfire erupted, and someone inside Peter Luger called 911, the sources said.

Police were nearby at a Reclaim Pride demonstration at Montrose Avenue and Lorimer Street and responded quickly, according to sources.

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