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Two inmates used an electric saw to break out of their cell in the middle of the night - but their escape was only discovered at lunchtime, a prison officer said.
James Anthony Whitlock, 31, who has links to Kent, and accomplice Matthew Baker, 28, were serving life sentences at Pentonville prison in London.
It is claimed the pair used mannequins to trick warders into thinking they were sound asleep while in fact they were making off via fifth-floor window just before noon today.
A prison officer speaking outside the north London prison said alarms began ringing at around midday when prison officers confirmed two inmates were missing.
Speaking anonymously he said: "They didn't use diamond cutters, it was an electric saw.
"The alarm bells started ringing at around midday - that was when the escape was discovered.
"We've been understaffed for a long time, that's why nobody noticed.
"There is only about 70 prison officers to look after all of the inmates."
Metropolitan Police are warning the public not to approach the duo as they could become violent.
Whitlock was on remand having been charged with conspiracy to burgle over 19 offences of theft from ATMs at various locations in the south-east of England between December 2015 and August 2016.
Matthew Baker, 28, was found guilty of attempted murder two weeks ago having stabbed a man in Dagenham following a dispute. He had been remanded for sentencing on 11 November.
A visitor who declined to be named said: "All of the prisoners know about it and they're all discussing how they got over the wall.
"I think they used bedsheets from the fifth floor but nobody realised because staff didn't come to check on them.
"The prison is really understaffed.
"It's an awful prison, the electricity was out last week and they had no heating.
"It was two white guys who were in the same cell but no-one knows how they got over the wall. It must be at least 25ft tall.
"The prison guards punish everyone when something happens like this.
"Both of the prisoners had life sentences but I don't think they are a danger to the public.
"But they must have done something bad to get that long."
The visitor added: "The whole prison is on lockdown now and all of the prisoners are in their cells.
"Nobody is allowed out."
A former convict who was let out of Pentonville just hours after the escape said he was several doors down from the escapees.
He said: "They did it from the fifth floor, they were both in the same cell."
A local resident backed up claims of mannequins being found and said: "The mannequins and diamond edge cutter is all true.
"There has been numerous complaints that the cameras are pointing at the flats over the wall instead of inside the prison.
"But this has been happening for years, the prison staff work really hard for hardly any money but the management don't care.
"The netting outside the windows has been set on fire loads because bags of drugs keep getting stuck in them from the drones."
A barrister leaving the prison this afternoon said: "I'm not surprised, the conditions are terrible.
"The prisoners are kept in their cells for hours, it's Victorian conditions."
Yasmin Qureshi, MP for Bolton South East and Labour's Shadow Justice Minister, has blasted the government's response to last night's riot at HMP Bedford and the two escapes at HMP Pentonville.
She said: "The past 24-hours have provided yet more evidence of the crisis in our prison estate which has developed under this Tory Government.
"We have seen a serious riot at one prison and two prisoners have escaped from another, but we haven't heard a thing from the Justice Secretary.
"Labour has repeatedly warned about the dangers of understaffing and overcrowding in prisons.
"The Government must act immediately to make sure our prisons are safe and secure."
Whitlock is described as a white man of slim build. He has the word ‘Tracy’ tattooed on his torso. Baker is described as a white man with ginger hair.
It is not known what clothing either men had when escaping from the prison.
Police are asking the public to call them on 999 should they see either man, and not to approach them.
Alternatively, to remain anonymous call Crimestoppers on 0800 555 111.