Officers say two people - a man and a woman - were both wounded in an altercation with a man on Liverpool Road, Hutton.
The pair, who were occupants of a Vauxhall Corsa car, were injured after the incident with a pedestrian.
Both received multiple stab wounds. The man was detained in the Royal Preston Hospital and the woman was treated and then discharged.
A police spokesman said: "We were called at around 11:55pm last night to the report of two people being stabbed on Liverpool Road, Hutton.
"An altercation had taken place between the occupants of a Vauxhall Corsa and a pedestrian who was stood in the road, resulting in a man and woman – occupants of the car - receiving multiple stab wounds.
"The man, aged 22, received injuries to his legs, back and abdomen and is in a serious but stable condition in hospital.
"The woman, aged 28, was initially taken to hospital with wounds to her back but she has since been released.
"A 20-year-old man from Longton has been arrested on suspicion of assault (GBH) and possession of a drug of class A. He remains in police custody at this time."
The busy Liverpool Road was closed between Hutton and Longton and was still cordoned off this morning as police carried out an extensive search of the area.
DI Steve Monks said: “We are still in the early stages of our investigation but I would like to reassure the local community that we believe this was an isolated incident, all parties involved are known to each other and there is no wider threat to the public.”
Anyone with information can call us on 101 quoting incident reference 1826 of September 4.