The duo were arrested from Digiana area of Jammu during police raids, they said.
During the search operation, police recovered five grams of heroin from them, a police officer said adding that the two youth were arrested and a case has been registered against them.
They have been identified as Jaipreet Singh and Manjot Singh of Preet Nagar, Digiana, the officer said.
With this latest case, a total of 12 people have been arrested in past three days with heroin.