The victim has not yet been formally identified.
Cordons were set up and the crossroads of Station Road/Holyhead Road and Waterloo Road/Rock Road were still closed this morning.
Forensic investigators could be seen looking for evidence outside the Blue Elephant restaurant this morning.
Resident Keith Johnson said: "I cant believe it. I heard a bit of noise earlier on but nothing that sounded out of the ordinary. "Nothing that would make me phone the police. I went to bed but woke up later because of the lights.
"I'm sorry to hear that. It's very sad for his family. That is no age at all."
Thomas Martin, who lives in Waterloo Road, was also shocked to learn of what happened. "I came out to walk the dog this morning and saw all the police here. It's shocking really.
"It's sad to see. It's not the best area here, it has to be said. It's hard to comprehend when something like this happens. The police need more help to stop this kind of thing. There was the incident in Dawley the other week, and now this."
Two men aged 21 and 30, both from Telford, have been arrested on suspicion of murder.
Chief Detective Inspector Dean Jones said: “A murder investigation has been launched and we are keen to speak to anyone who may have witnessed the assault that we believe took place in the park and children’s play area near to Millennium Square, just off the Ketley Park Road.
"We’d also like to hear from anyone who has dash-cam fitted to their car and was driving in the area of the park (Ketley Park Road) and Holyhead Road. It is possible they may have captured footage which may help with our enquiries.
“We believe this to be an isolated incident, understandably our community will be distressed and we would invite anyone to speak with members of our safer neighbourhood and local policing patrols who will have an increased presence within the area over the coming days.”
Anyone with information can contact West Mercia Police on 101 quoting reference 44i of July 3 or contact Crimestoppers on 0800 555 111.