Police say the sophomore guard was stopped around 10:20 p.m. at the intersection of Holloway and Guthrie Streets near downtown Durham.
Hairston, 20, was charged with driving without a license. He, along with two other men, were also charged with possession of marijuana.
Authorities also said a 9mm handgun was found on the ground outside Hairston's vehicle during the stop. Forensic testing is currently being done on the weapon, according to police.
Plastic baggies, a magazine with nine rounds of ammunition, cigars, and a rental agreement for the 2013 GMC Yukon were also seized from the vehicle, according to a police report.
Hairston has since been released from jail on a $1,000 bond.
The incident is still under investigation.
Hairston was cited for speeding in Durham three weeks ago, according to authorities.
A spokesman for UNC Athletics tells ABC11 that they are aware of Wednesday's situation.
"We are aware of the situation involving one of our athletes," UNC Senior Associate Athletic Director for Communications Steve Kirschner said. "We are still gathering information and may comment further later."
In April, Hairston confirmed he would be returning to UNC next season after considering going to the NBA.
It is unclear on how the arrest will impact Hairston's standing at the university.