It happened in Raleigh on Highwoods Boulevard at Atlantic Avenue at around 2 a.m. Saturday.
Raleigh Police Department said Daniel Manzano was speeding in his silver Honda Pilot when he lost control, hit a concrete median and then slammed head-on into a tree.
The SUV then wrapped around the tree, killing passenger Victor Martinez, 24.
Manzano was arrested on charges of death by vehicle, driving while impaired, speeding and having a fake license plate.