The Interior Ministry issued a statement early Monday saying 11 members of the group "are suspected of receiving overseas military training under the supervision of the Iranian Revolutionary Guards and Hezbollah in Iraq."
It says police had arrested 14 suspects in raids that saw officers seize weapons and explosives. It says the group's two leaders are abroad in Iran.
Iran's government called the allegation a "futile and baseless lie."
Sunni-ruled Bahrain, like other Gulf Arab nations, remains suspicious of Shiite power Iran and periodically announces similar arrests.