Paramus officials say Officer Rachel Morgan, 31, tried to pull over a silver car with phony plates for speeding, but the driver sped off.
The suspect ended up on the Garden State Parkway, where he lost control of the vehicle at mile marker 163.
Officer Morgan arrived on the scene and that's when the shooting started. She was wearing a bullet resistant vest. She was severely injured by two bullets that ripped through her side and abdomen.
Back up officers returned fire, hitting 23-year-old Michael Carmody multiple times. He was taken to the hospital, where he died on Wednesday afternoon.
Police sources say Carmody, who lived with his father in a modest home in Westwood, had a history of drug arrests and drunk driving.
Officer Morgan who joined the Paramus police department two years ago.