Police has arrested one Hizb worker identified as Ghulam Ahmad Sofi alias Jany Baba, a resident of Juhama area of the district, a police spokesman said.
He said Sofi was involved in recruiting local youth for terrorist activities.
Two grenades and a satellite phone were recovered from his possession, the spokesman said.
A case under Arms Act has been registered in Baramulla police station, the spokesman said.
He said during the course of investigation, it was found that he was affiliated with banned Hizb-ul-Mujahideen outfit and was working for the revival and expansion of the outfit in the Kashmir Valley, particularly in Baramulla.
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