Police's counterterrorism unit surrounded a six-storey building in Genda around 7:30pm on Friday and raided a flat, but it emerged that the terror suspects had left it in the morning.
Counterterrorism Deputy Commissioner Mahibul Islam told bdnews24.com on Friday that they have spotted some explosives.
On Saturday morning, the bomb disposal unit was called in to search the flat for explosives.
Bomb squad members were seen entering the building around 10:45am.
A large number of security personnel have been deployed in the area and fire trucks have been also kept on standby.
Police used loudspeakers requesting neighbours to maintain a safe distance and asking them not to panic.
The media has not been allowed within the 100-yard radius of the building.