A 27-year-old man was arrested after police received reports of a man armed with a firearm in Lurgan on Friday afternoon.
The incident took place in the Portadown Road area at around 3.50pm.
Police attended the scene and arrested a 27-year-old man on suspicion of possession of a firearm or imitation firearm in suspicious circumstances and two counts of possession of class C controlled drugs.
An imitation firearm was recovered from the scene along with a quantity of suspected class C drugs.
The man is currently in police custody assisting officers with their enquiries.