"Firearms of this type, while not illegal to possess, are concerning to law enforcement," the Catawba County Sheriff's Office said in a news release.
Investigators found the disguised gun while searching a home as part of a narcotics investigation.
In the home deputies found cocaine, magic mushrooms, $2,300 cash and 20 guns.
The gun that looked like a Nerf gun was a Glock-19 with a 50-round drum magazine, according to investigators.
Officials arrested Damien Alonzo Burch, 35, of Catawba, and charged him with drug possession.