Authorities were called by a male motorist who pulled off the Pacific Coast Highway and stopped in front of the music producer's home.
Dre, whose legal name is Andre Young, told police he simply asked the man, whose name has not been released by police, to leave. When the man returned, Dre pulled out his cell phone and started videotaping the man, according to the police report. The record producer said that's what triggered the motorist to ultimately leave.
Deputies responded to the call and detained the person matching the description given by the caller.
Dre, the founding member of the 80's rap group N.W.A., was recently depicted in the Oscar-nominated film "Straight Outta Compton." The self-proclaimed "first billionaire of hip hop" is known for being outspoken against police violence and racial profiling.
A police official said Dre was "very cooperative" throughout the situation at his multi-million dollar beachfront home.
"He consented to a search on his person then he was placed in handcuffs and was...briefly detained in our patrol car," said Lt. Joshua Thai.
A source directly involved with the incident told ABC News that after Dre asked the motorist to move his car, the motorist allegedly went "insane," cursing at Dre and, the source added, saying, "Here we go, another black guy with a gun."
Police did not find a weapon at the scene but the motorist initiated a citizen's arrest for the misdemeanor charge of brandishing a firearm.
The incident, which was captured on video by TMZ, will be reviewed by the district attorney, who will decide whether to press any charges.
ABC News has reached out to Dre but has not received a statement.