PSNI Organised Crime detectives, accompanied by local Neighbourhood officers, carried out two searches in the Newry area on Wednesday morning.
A quantity of cannabis with an estimated value of around £1100 was recovered along with drugs paraphernalia and a number of mobile phones.
A 29-year-old man was arrested and questioned on suspicious of conspiracy to supply a class B controlled drug and conspiracy to import a class B controlled drug.
He has since been released on bail to return for further questioning at a later date.