Police arrested four people in Limassol after seizing more than 126 kilograms of ketamine, along with cocaine, methedrone and MDMA.
A court ordered all four to remain in custody for eight days.
The suspects, an Israeli couple and a Palestinian couple, were held following searches at two properties on Saturday.
Police believe the group was part of an organised network smuggling drugs into Cyprus from Israel using luxury yachts docked at marinas in Limassol and Larnaca.
At the first property, officers found 34 grams of cocaine, 246.5 grams of ketamine, 15 grams of methedrone and 12 grams of MDMA.
They also seized €4,150 in cash and 42 packets of untaxed cigarettes.
At the second property, police found 126 kilograms and 630 grams of ketamine, along with a precision scale.
Both properties had precision scales and mobile phones seized as evidence.
Police say the drugs were kept at the two houses before being sold on, with buyers limited to Israeli residents in Cyprus rather than Cypriot nationals.
The four suspects appeared before the Limassol district court on Sunday, where the eight-day remand was granted to allow the investigation to continue.
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