Four men aged in their 20s and 30s were arrested after police raided a Macpherson Street, Wodonga, property and uncovered a bomb.
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About a dozen police were involved in the raid, which also uncovered drugs, a pen pistol and ammo, and a large amount of stolen equipment including chainsaws and other power tools.
A spokesperson said Victoria Police executed a search warrant at a West Wodonga property this morning, and found an improvised explosive device.
Police are currently on the scene, awaiting the arrival of the Bomb Response Unit.
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Wodonga SES volunteers are also at the scene, sandbagging the area.
Four men were arrested at the property.
A police spokeswoman said that there is no threat to public safety.