Man bailed after being arrested in the street on suspicion of terror offence
Police also searched a residential address in east London and a business area in Essex as part of the investigation, the Metropolitan Police said.
The man was arrested in the street in east London on Sunday, and taken to an east London police station.
A Met spokesman said: "The man was detained and then arrested on suspicion of possessing an article for a purpose connected with the commission, preparation or instigation of an act of terrorism contrary to Section 57 Terrorism Act 2000."
The man, 22, was released on police bail to a date in mid-December pending further inquiries.
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