Production of proton-antiproton pairs by two-photon scattering has been observed at the electron-position storage ring PETRA. A total of eight proton-antiproton pairs have been identified using the time-of-flight technique. We have measured a total cross section of 4.5 ± 0.8 nb in the photon-photon c.m. energy range 2.0–2.6 GeV.