Officers from the Fareham & Gosport High Harm Team and Response & Patrol responded to a suspected drug deal in Gordon Road, Gosport, last night.
Officers stopped three people and searched them and their vehicles in accordance with Section 23 of the Misuse of Drugs Act.
A kinder egg capsule containing suspected Class A drugs, a crack pipe, mobile phones, and nearly £2,000 in cash were discovered by police.
Three people were arrested on suspicion of being involved in the supply of Class A drugs: a 39-year-old man, a 75-year-old man, and a 37-year-old woman.
They are still being held at this time.