Constable Tim Coudret, of Mosgiel, said he was armed with a Taser when he entered the caravan at the Brighton Caravan Park.
The 8-week-old chihuahua and shih tzu-cross puppy, valued at nearly $700, was taken from a Dunedin pet shop on Friday.
Const Coudret and two other officers searched the caravan and after they entered, the puppy ''poked its head out from underneath the bed''.
A 36-year-old Dunedin man surrendered himself and the puppy without resistance, Const Coudret said.
The man was charged with theft and would appear in the Dunedin District Court on Friday.
Animal Attraction pet shop owner Judi Johnson said she was ''over the moon'' the puppy had been returned safely and cried when they were reunited at the Dunedin Central Police Station yesterday.
''I was so worried for her,'' she wept.
Ms Johnson said the puppy appeared ''tired'' but healthy and would be checked by a veterinarian.
After it had recovered, it would be on sale again.
