Gary Murdoch, 42, was in bed when police raided his home on December 22, 2017.
Murdoch pulled out bags of pills from under his pillow, and fished out bags of amphetamines from inside his freezer.
Fiscal depute Sean Maher said: "A search was carried out at the property. On entering the first bedroom police observed a male and female - the accused and a witness - and told the accused to get dressed.
"The accused produced bags with white tablets from under his pillow, and stated without prompting that they were all his, as was a quantity of blue tablets in a metal tin.
"He was cautioned and said there was also an amount of 'speed' in his freezer."
White powder found in the freezer weighed more than 18 grams and had a street value of between £80 and £100, the court heard.
The 776 Clonazolam tablets found had an estimated value of between £338 and £776, the prosecutor said.
Murdoch pleaded guilty at an earlier hearing to being concerned in the supply of amphetamine and Clonazolam.
Mr Maher added: "The accused took full ownership of the drugs recovered and stated that his intention had been to supply them to others."
Sheriff Maxwell Hendry said: "He tells the author [of a social work report] he views himself as a good father, yet the drugs were found in a scarcely concealed location - and his rationale was that he wanted his children to have a good Christmas."
Defending, Stephen McGuire said: "He doesn't avoid responsibility for the decisions he took.
"His behaviour since then may explain to a degree why he believes himself to be a good father.
"He has taken commendable steps to turn things around and now takes no drugs beyond those prescribed by a GP.
"He has put this unfortunate offence very much behind him, but he recognises the potential risk he put his children in."
Sheriff Hendry warned the dealer he could be jailed if he was caught again.
He told Murdoch: "I don't want you to be under any illusion whatsoever - being concerned in the supply of drugs is a serious, serious matter.
"You are a cog in a machine which supplies drugs that are a blight on our community.
"If you commit this type of offence again, I think you will be sent to prison."
Murdoch was placed on a community payback order with 18 months of social work supervision, and was also ordered to carry out 160 hours of unpaid work within the next six months.
Murdoch, of Balloch, West Dunbartonshire, was sentenced at Dumbarton Sheriff Court