An eyewitness in Damside reported seeing armed police at the scene at around 11pm on Wednesday.
A 47-year-old man was subsequently arrested.
Officers also conducted a search in Pitreavie Court in Dunfermline.
A Police Scotland spokesman said: “Officers in Fife and Edinburgh conducted joint enforcement activity alongside the National Crime Agency as part of a serious and organised crime investigation
“Two addresses in Pitreavie Court, Dunfermline and Damside, Edinburgh were searched and a 47-year-old man was subsequently arrested.
“He is scheduled to appear at Dunfermline Sheriff Court on Friday 21st September.
“Inquiries are continuing.”
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