Police said Francisco Fraustro, 39, and David Desjardin, 32, were dealing drugs from their apartment.
Just after 5:30 p.m. on Friday, state police executed two search and seizure warrants on Litchfield Avenue in Killingly following an ongoing investigation into heroin trafficking.
Police found both men in their apartment, along with others, and after a search of the apartment seized 400 bags of heroin packaged for sale, approximately $1,300 in cash, several bags of synthetic marijuana, a digital scale and five cell phones.
Both men were arrested and charged with possession of narcotics, possession with intent to sell, and operating a drug factory. Fraustro was also charged with narcotics outside the original container.
Both men will be held on $75,000 bail and are due in court on Tuesday.
Police said this is the third time Fraustro has been arrested for selling heroin in the last five months.
