The agent from the specialised Green Squadron was in disguise as the famous Dr Seuss character as he led the operation targeting alleged members of a drug trafficking gang in Lima.
Footage distributed by Peruvian police shows the police officer as he smashed a door open and entered a house during the raid.
He can be seen searching the house allegedly finding money and bags of cocaine while in a Grinch costume and Santa suit.
The Grinch costume was part of a police ploy to ensure their presence in the neighbourhood went undetected during the pre-Christmas drug bust.
Following the raid, the Grinch told his colleagues: “I hate Christmas and criminals”.
Police said authorities seized drugs, as well as instruments allegedly used to make drugs, during the raid.
Multiple people were reportedly arrested.
Peruvian police often dress up as themed characters while on the job.
In November, officers dressed as Marvel superheroes arrested several alleged drug dealers during a bust.
And in February, an officer wearing a teddy bear costume apprehended an alleged criminal on Valentine’s Day.