The family of one of the women involved rushed to her bedside and are praying for her as they struggle to comprehend what happened.
The pair, believed to be 19, from Melbourne had been staying at a hostel near Laos' capital Vientiane when they fell critically ill last week, radio station 3AW reported.
There are reports two Swedish nationals have died and others also fell sick.
The pair had been staying at a hostel near Laos' capital Vientiane. (Suree Pritchard/AAP PHOTOS)
Friends Bianca Jones and Holly Bowles fell victim to an apparent case of methanol poisoning and are fighting for their lives in Thai hospitals, Herald & Weekly Times chair Penny Fowler said in an email to staff.
Ms Jones' mother is employed by the newspaper group.
The Jones family said they "can't believe what has happened to our angel," according to a statement issued to the Herald Sun.
"Our beautiful Bianca was on a dream getaway with her best friend Holly," they told the newspaper.
"They were filled with joy and had such incredible adventures ahead of them, travelling through Asia.
"We are here by Bianca's bedside praying for her. Please respect our privacy at this difficult time."
Nana Hostel owner Duong van Huan told the ABC the women, believed to be 19, had been drinking at a bar and were taken to hospital after becoming unwell on Wednesday morning.
"This has never happened at the hostel. My business takes care of everyone. We never do anything wrong," the owner told the broadcaster.
"I'm not sure what happened but at the hostel we only sell drinks, whiskey, cocktails and police have already checked everything.
"All of the alcohol we have is safe. In eight years, this has never happened."
Australia's Department of Foreign Affairs and Trade confirmed consular assistance is being provided to two Australians and their families in Thailand.
"Our thoughts are with them at this deeply distressing time," a spokesperson said.
"Owing to our privacy obligations we are unable to provide further comment."
Minister Steve Dimopoulos said the situation was an "absolute tragedy". (Diego Fedele/AAP PHOTOS)
Victorian minister Steve Dimopoulos described it as a tragedy.
"What was meant to be a beautiful holiday full of memories has ended an absolute tragedy, and we all think of people that we love who travel for the joy," the minister told reporters on Tuesday.
It's understood Ms Jones and Ms Bowles pair graduated from secondary schools in Melbourne's southeast in 2023.It can be difficult to differentiate between alcohol that's safe to drink and methanol because it is a colourless alcohol used for industrial purposes, according to Medecins Sans Frontieres.
Thousands of people are poisoned by the substance each year, the organisation said, and the fatality rate in an outbreak is between 20 and 40 per cent.
Australia's Smartraveller website urges tourists to be on the look out for methanol poisoning, saying as little as one shot can be fatal.
"Alcohol production is less regulated in some destinations than in Australia," the website states.
"This can lead to methanol being used in the production process to lower costs."
It warns symptoms appear similar to drinking too much but can be "stronger", leading to vision problems including blindness or death.
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