Two women in their 50's have sustained life changing injuries.
The incident occurred at around 9:10pm on Saturday Evening on Station Road, close to the junction with Amounderness Way.
It involved a white BMW 330i, a second vehicle, which was parked and unoccupied, and two female pedestrians.
One of the women, aged 56, suffered life-changing leg injuries, and multiple fractures.
The second woman, aged 57, also suffered multiple fractures, which are believed at this point to be life-changing.
Both women were taken by ambulance to Royal Preston Hospital for surgery.
Family liaison officers have been appointed to support both women and their families.
Station Road was closed for around six hours while collision investigators attended.
A 33-year-old man from Fleetwood was arrested at the scene on suspicion of causing serious injury by dangerous driving and drink-driving and remains in police custody.
DI James Edmonds, of Blackpool CID, said:
“Two women have sustained extremely serious injuries and an investigation into the collision is now very much underway."
"We would urge anybody who saw the incident or saw the white BMW in the moments before it happened to contact us as soon as possible.”