Herbal cannabis worth an estimated €250,000 was seized during a Garda raid in Waterford last night.
The drugs were found at an industrial unit on the outskirts of the city.
A man aged 42 was arrested at the scene.
During a follow up operation, a 34-year-old man was arrested in Waterford city.
Both men are being held under Section 2 of the Criminal Justice (Drug Trafficking) Act, 1996, at Waterford Garda station.
Searches are ongoing in Waterford city and south Kilkenny.