Officers searched a Toyota sedan on December 31 after pulling the car over on Dargan Street, Yagoona during a patrol of the area.
Drugs, cash and three mobile phones were allegedly seized from the car.
A 31-year-old man was arrested and taken to Bankstown Police Station, where he was charged with supplying prohibited drugs, dealing with proceeds of crime under $5000 and using a non-compliant light vehicle.
He was refused bail and faced court on January 1, where he was granted conditional bail.
After examining the mobile phones, police allegedly unearthed violent extremist material.
The discovery sparked a raid on a home in Bass Hill around 6am yesterday, where police seized more mobile phones, storage devices and a knife.
A 31-year-old man was arrested and taken to Bansktown Police Station where he was charged with possessing violent extremist material and possessing or using a prohibited weapon without a permit.
He was refused bail and appeared at Bankstown Local Court yesterday, where he was granted conditional bail to appear back in court on March 3.
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