Police raided the property in Beech Avenue at 2.20pm on Monday.
They discovered a large quantity of diamorphine as well as a three figure sum of cash.
A number of other items associated with drugs supply were recovered during a search and the householder was arrested.
The 28-year-old man has been charged under the Misuse of Drugs Act .
Chief Inspector Andrew McLean said: “As a result of an intelligence-led search at an address in Beech Avenue, officers recovered a sizeable quantity of the harmful drug before they could it was distributed within the local community.
“We will continue to act on information from the public to identify those responsible for drug crime in the Scottish Borders and bring them to justice.
“Anyone wishing to report crimes of this nature in their local community can contact Police Scotland on 101 or by making an anonymous report through the charity Crimestoppers on 0800 555 111.” The man will appear from custody at a local court over the next few days.
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