Deputies said they were confronted by two armed suspects at the residence. One suspect - Adrian Castaneda - was shot and killed and officers arrested the second suspect.
One Harnett County deputy and one SBI agent discharged their weapons during the incident.
Authorities recovered a large amount of cocaine from inside the home. The second suspect, 26-year-old Orlando Mendez Castaneda, is charged with trafficking cocaine, manufacturing cocaine, possession of drug paraphernalia, resisting and obstruction.
He is being held in the Harnett County Detention Center under a $3.5 million bond.
The SBI is investigating the incident as a part of normal procedure when there is an officer involved shooting.