A man is being questioned over the seizure of cannabis resin worth an estimated £150,000.
The suspect was arrested when officers from the Organised Crime Branch pulled a car over and found the drugs.
The search was carried out on the Armagh Road in Portadown just after 8am on Saturday.
A 29-year-old man is currently being held in police custody.
Craigavon Mayor, Councillor Carla Lockhart, commended the PSNI for the drugs haul.
"I trust that the offenders and those involved in this activity will face the full rigours of the law," she said.
"Unfortunately illegal drugs and substances are all too common within our communities.
"Their consequences for families are devastating and destroying young lives."
The mayor plans to hold a meeting with the PSNI and community representatives over drugs problems in the area.
"We need to arm parents and children with information about the dangers of drugs and illegal substances," she added.