At 12.50am, police officers encountered some suspicious behaviour in a Prospect pub car park and made further inquiries with two men in a parked car.
The investigation uncovered a quantity of what is believed to be heroin, along with knives, scales and other equipment.
The two men, a 33-year-old Reynella man and a 35-year-old Davoren Park man, were arrested and both charged with trafficking in a controlled substance.
The Reynella man was further charged with providing false details, possessing prescribed equipment, driving while disqualified and displaying false registration plates.
They were refused police bail and expected to appear in the Holden Hill Magistrates Court today.