Fake watches and £20,000 in cash was seized by officers after a house raid in Sheffield.
Officers involved in the operation in the Carterknowle area of the city said they also found evidence of Class A and B drugs.
Two men, aged 25 and 32, were arrested on suspicion of being concerned in the supply of drugs, money laundering and trademark offences.
A South Yorkshire Police spokeswoman said: "We executed a drugs warrant in the Carterknowle area of Sheffield on Sunday morning.
"We recovered in the region of £20,000 in cash, numerous high valued watches, believed to be counterfeit, evidence of class A and B drugs.
"Two males, aged 25 and 23, were arrested as part of the warrant on suspicion of being concerned in the supply of drugs, money laundering and trademark offences and have since been reported for these offences."
Anyone with information should call South Yorkshire Police on 101.