His arrest was made by the Intelligence Bureau Pakistan in a raid with police commandos. On July 25, 2004, a nearly eight-hour battle ensued in the town of Gujrat, Pakistan between security officials and terrorists. Ghailani and thirteen others, included his wife and children, were arrested. A police officer was wounded in the battle. Pakistani Interior Minister Makhdoom Faisal Saleh Hayat announced the capture of Ghailani on July 29, 2004. The US Government had offered a $5,000,000 USD bounty offered for information leading to the arrest of Ghailani.