The Saugeen Shores Police Service (SSPS) responded to the report of a break and enter in progress early Sunday morning.
In a statement, police said that a male forced his way into a Southampton home and demanded the keys to the resident's vehicle.
The man was able to flee in the stolen vehicle before police arrived on the scene.
According to police, a Saugeen Shores officer was later able to locate the vehicle near Bricker Street, in Port Elgin.
SSPS said a 27-year-old man, known to police, exited the vehicle and brandished an edged weapon when the officer approached him.
"The officer was able to take physical control of the male with assistance from Cancom Security until more units arrived," the SSPS statement read.
The 27-year-old, from Bruce County, was arrested and faces a number of charges, including breaking and entering, theft of a vehicle, and several weapons charges.
