Police were called at 1:34pm on Friday after two cars collided on the A5087 at Rampside, Barrow.
The collision involved an Audi S4 and a Volkswagen Up.
A passenger in the Volkswagen, a man in his late teens, received medical treatment but was pronounced dead at the scene.
The driver of the Volkswagen, a man in his late teens, was airlifted to hospital in Preston where he remains.
The driver of the Audi, a 20-year-old man from Barrow, was arrested on suspicion of causing death by dangerous driving and driving whilst over the prescribed limit of a specified drug.
He was treated at Furness General Hospital before being questioned by Police.
He has now been released from the station pending further investigation.
Police are asking any witnesses to the collision or anyone who has dashcam footage to contact officers on 101, referring to incident 133 of June 6 or email SCIU@cumbria.police.uk
