It said the two rangers died after getting trapped by the blaze and a third one was hospitalised.
Chinese state media say two forest rangers have died in a forest fire caused by people burning fake paper money and incense in a traditional ceremony to honour dead ancestors.
The official Xinhua News Agency said the fire broke out on Thursday on a hillside in the city of Qingdao and was put out by more than 100 firefighters after two hours.
It said the two rangers died after getting trapped by the blaze and a third one was hospitalized.
Xinhua said two people were taken into police custody on suspicion of causing the fire.
Chinese visiting their ancestors' tombs in early spring often burn incense, fake money and paper models of houses, cars and other goods in the belief their ancestors will be able to enjoy them in the afterlife.