A large number of police officers raided a bar on York Street in Launceston on Thursday.
A search at Empire 44 Bar & Nightclub, formerly known as Mode and Hotel New York, was conducted throughout the morning, with officers seen scouring the building's rooftop.
It is the second bar in as many days to be searched by police as part of a series of planned operations to tackle drug trafficking in Launceston.
The Greenwood Bar was one of four properties officers descended on during simultaneous raids on Wednesday.
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Police would not reveal the location of the other three properties searched because they said the investigation was ongoing.
Detective Inspector Craig Fox said for several months there'd been an ongoing investigation into drug trafficking which led to Wednesday's raids.
A 38-year-old Newstead man, a 28-year-old Kings Meadows man and a 26-year-old Mowbray woman were arrested as a result of the police operation, with officers expecting to question the trio once the searches had finished.
Detective Inspector Fox on Wednesday said a significant amount of cash and drugs were located during the raids.
"We are aware of several players in the Launceston area who are importing and distributing illicit drugs, whether it be heroin, cocaine, MDMA or ice. We have seized all those quantity of drugs today," he said.