Knight had faced one count of murder for the death of Terry Carter and one count of attempted murder in the case of Cle "Bone" Sloan, who was maimed after Knight allegedly struck the pair with his truck.
The Guardian reports that the plea deal calls for Knight to serve "22 years in prison on the voluntary manslaughter count, and another six years because it is a third-strike violation". A judge ruled on Thursday, April 16, 2015, that Knight will stand trial on murder and attempted-murder charges.
The plea came just days before jury selection was scheduled to begin in the long-delayed case that was to start on October 1. Carter died and Sloan survived his injuries.
Knight had claimed he was trying to flee the scene in his truck, contending that Sloan - who was working security for the film set - was armed with a gun.
"Straight Outta Compton" tells the story of the rap group N.W.A. The incident was captured on videotape by the restaurant's surveillance cameras.
At a hearing Thursday afternoon in Los Angeles County Superior Court, Knight plead no contest to voluntary manslaughter.
But at one point when asked by the judge if he understood his plea could lead to deportation were he not a USA citizen, Knight joked: "Is ICE (Immigration and Customs Enforcement) gonna come and get me?"
He helped launch some of rap's biggest acts, including Dr. Dre, Snoop Dogg and Tupac Shakur.
Knight, a Compton native and former football player, co-founded Death Row Records, which in its heyday in the early 1990s was generating revenues of about $100 million per year. Knight, who was at the wheel, was slightly wounded himself.
In August 2014, he was shot a half-dozen times at a Los Angeles-area nightclub.
This is not the first time Knight has faced criminal charges.
The following year, a federal racketeering probe of Knight and his record label, stemming from allegations of murder, drug trafficking, money laundering and gun running, was closed with the company pleading guilty to misdemeanor tax charges. Shakur's slaying remains unsolved.