Officers had set out initially to take a robbery suspect into custody but made the other arrests after carrying out further enquiries.
None of the arrested people have yet been charged with any offences.
A spokesperson for Leicestershire Police said: “Officers attended Rutland Street, Melton, just before 3pm yesterday to arrest a 49-year-old man, from Nottingham, on suspicion of robbery.
“While in the area, further enquiries were carried out and the man, along with four other people, was also arrested on suspicion of being concerned in the supply of class A drugs.
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“The four other people arrested are two men, both aged 20, from Nottingham, a 46-year-old man from Melton and a 40-year-old woman from Melton.
“All five people have since been released under investigation while enquiries continue.”