A man was arrested in the Inishowen village of Clonmany last weekend in relation to drug offences at a local bar.
The man, aged in his 20s, has since been released.
Gardaí made the arrest at a licensed premises on Saturday 6th August, as Clonmany Festival events were taking place in the area.
An amount of suspected cocaine was recovered at the scene. Gardaí confirmed that the drugs have been sent for further analysis.
A spokesperson said: “The man was taken to Buncrana Garda Station and has since been released.
“A file will now be prepared for the DPP.”