Rapper Lil Za, whose real name is Xavier Domonique Smith, was arrested for felony possession of drugs, which deputies found as they served a search warrant at Bieber's residence.
Early reports indicated that the drugs were cocaine, but officials later said they believe the drugs were Xanax and ecstacy, though tests on the drugs are pending.
The search was related to a recent egging case involving the singer's neighbor. Los Angeles County sheriff's officials say the case has escalated from a misdemeanor to a felony because damages from the incident exceeded $400.
Last week, Bieber's neighbor accused the singer of throwing eggs at his house. He said he and his 13-year-old daughter were the target of an unprovoked attack Thursday night.
Authorities estimated the damage to the neighbor's home at approximately $20,000.
Bieber was at home at the time of the raid, but investigators said he is not connected to the drugs other than the fact that Lil Za was staying at the star's house.
Sheriff's officials said surveillance video was one of several pieces of evidence taken from Bieber's home. Detectives said they will look through it to make sure nothing was deleted or altered.
The alleged egging incident isn't the first time Bieber has had problems with his neighbors. Law enforcement officials said Bieber chooses not to speak about the incidents when contacted by law enforcement.
However, sheriff's officials said everyone involved was being cooperative.
Lil Za was released on bail around 8:15 p.m. Tuesday. He was supposed to be released earlier, but Los Angeles County officials said the rapper was held for several more hours after being re-arrested inside his jail cell for vandalism charges that were unrelated to the drug case and the egging case.