An array of drugs - Class A, B and C - were discovered along with a large quantity of cash by officers patrolling the area at around 11pm.
The officers also found one of the suspects in possession of a machete.
Preston's Neighbourhood Police Task Force said 'multiple arrests' had been made.
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Lancashire Police has been approached for further details.
Police in Preston have made a number of arrests in recent weeks as the task force continues to target drug dealing in the city.
Last weekend, officers responded to community concerns about drug activity in Plungington by ramping up patrols.
A large quantity of Class B drugs was recovered from a home as a result of information from residents.