We have detected coherent quantum oscillations between Josephson phase qubits and critical-current fluctuators by implementing a new state readout technique that is an order of magnitude faster than previous methods. These results reveal a new aspect of the quantum behavior of Josephson junctions, and they demonstrate the means to measure two-qubit interactions in the time domain. The junction-fluctuator interaction also points to a possible mechanism for decoherence and reduced fidelity in superconducting qubits.