The former Prime Minister, Serge Vohor, and a former MP for Efate, Steven Kalsakau, were the first of 14 MPs who were jailed in 2015 to be granted parole.
A journalist in Port Vila, Evelyne Toa, said a crowd gathered to witness the politicians emerges through the gates at 10 o'clock, local time.
"There were a few family members waiting outside the entrance of the prison, a few supporters and members of their political parties [and] they walked out escorted by the current leader of the opposition."