It is believed the raid - as well as a similar operation at a Combs home in Miami - was associated with a federal sex-trafficking investigation based out of New York.
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Combs has recently been associated with legal troubles that include lawsuits over alleged sexual assaults and sex trafficking.
Find our latest updates on the raids of Combs' homes here | Diddy's homes in LA, Miami raided by feds as part of sex trafficking probe. Here's what to know | Diddy's electronics seized by federal agents in searches at his homes in Holmby Hills and Miami
HSI agents were conducting their operations in the 200 block of S. Mapleton Drive in Holmby Hills, a wealthy Los Angeles enclave known as a home for celebrities and the Playboy Mansion. The address is associated with Combs' Bad Boy Films production company.
Agents were seen detaining two men who were later identified as Diddy's sons, sources told ABC News. The two sons were not under arrest but were being detained outside as agents searched the property.
Dozens of agents were seen searching through the property, bringing out boxes and even looking through cushions in outdoor pool furniture.
Neighbors tell Eyewitness News they frequently see parties at the property lasting all night but they weren't aware of any illegal activities.
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Soon after news of the raid came out, tours were bringing buses of tourists by the home to watch federal agents continue their investigation.
Federal agents were also at a home in Miami associated with Combs.
"Earlier today, Homeland Security Investigations (HSI) New York executed law enforcement actions as part of an ongoing investigation, with assistance from HSI Los Angeles, HSI Miami, and our local law enforcement partners. We will provide further information as it becomes available," the Department of Homeland Security said in a statement released to the media.
The Los Angeles County Sheriff's Department was also on scene in a supporting role, the department confirmed.
Women who have made public accusations against Diddy are welcoming Monday's law enforcement activity.
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Attorney Douglas Wigdor, who represents Cassie Ventura - a singer, actor and former girlfriend of Combs - and an anonymous plaintiff referred to as Jane Doe, issued this statement Monday:
"We will always support law enforcement when it seeks to prosecute those that have violated the law. Hopefully, this is the beginning of a process that will hold Mr. Combs responsible for his depraved conduct."
Combs is a rapper, producer and entertainment mogul who has won three Grammys and whose net worth was estimated at close to $1 billion by Forbes in 2022.