The Alternative for Germany (AfD) set to become the first far-right party to win a regional election in Germany since World War Two.
However, other parties are likely to exclude them from power.
As per multiple outlets, exit polls from broadcaster ZDF showed the AfD winning 33.5% of the vote in Thuringia, well ahead of the conservatives' 24.5%.
In Saxony, the conservatives led with 32%, just half a percentage point ahead of the AfD.
The left-populist Sahra Wagenknecht Alliance (BSW), which also supports stricter immigration controls and opposes arming Ukraine, came third in both states.
With one year left until Germany's national election, these results are challenging for Chancellor Olaf Scholz's coalition.
While, his Social Democrats seemed to have passed the 5% threshold to remain in both state parliaments, his coalition partners, the Greens and the Free Democrats, faced uncertainty, potentially increasing conflicts within Scholz's already tense coalition government.
All parties, including the BSW, have vowed not to form a coalition with the AfD, viewing them as anti-democratic and extremist.
