Policemen working in collaboration with personnel of an intelligence agency raided a house on the outskirts of the Defence Housing Authority and arrested the three men, Lahore Police spokesman Niyab Haider said.
Weapons and grenades were recovered from the men.
Their initial interrogation revealed that they were planning to target Shia processions during Muharram, which begins later this month, he said.
The arrested men were taken to an undisclosed place for questioning.
