It took pace around 9:00am on Wednesday when officers searched an address in Westwood Avenue in the town, and recovered the drugs - believed to be heroin.
A 31-year-old man has been arrested and charged in connection with the find.
He has been released on an undertaking to appear at court at a later date.
A report will be submitted to the Procurator Fiscal.
Constable Calum McDougall, Operation Pinnacle, Fife, said: “This recovery shows our ongoing commitment to disrupt drug activity and supply in the Fife area.
“Information from the public about drugs crime is crucial to our investigations and we would urge anyone with information or concerns about drugs within the local community, to contact police.
Operation Pinnacle consists of a team of officers formed in May with one area of focus being targeting those involved in the supply of controlled drugs across Fife.