The accused were identified as Isham Din, the gang-leader, hailing from Kapurthala district's Kot Karar Khan village and Ragib Ali of Badaun district's Sejaswan village in Uttar Pradesh, Kapurthala SSP Sandeep Sharma said.
The duo was arrested at a special 'naka' (checkpoint), which was set up after a tip-off, at Pir Purania Chowk near Rampur Sunra village, he said, adding they were coming on a stolen motorcycle.
They were searched in the presence of DSP Dev Dutt Sharma and 3-kg opium was seized from their possession, he said.
Phagwara SP Harwinder Singh Sandhu said Din had earlier been arrested with 35 bags of poppy husk and had served a 10-year jail term.
They have been arrested under provisions of the Narcotic Drugs and Psychotropic Substances (NDPS) Act, the SSP said.
Meanwhile, police arrested two members of an inter-district criminal gang and recovered eight stolen two-wheelers.
The gang's kingpin, Akashdeep alias Golu, from Chahal Nagar and Hira Singh of Mansa Devi Nagar have been arrested, the SSP said.
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