The three-year-old found the drugs - believed to be amphetamine sulphate - hidden in undergrowth in a lane in the Blackmill area on Friday.
South Wales Police recovered the drugs and they are now undergoing forensic testing.
Officers have praised the dog and its owner for the "substantial" drugs find.
Det Insp Jason Redrup, head of Bridgend CID, said: "Thanks to its canine powers and the diligence of its owner a substantial amount of controlled drugs that would have been heading for the streets of Bridgend borough have been seized.
"Perhaps we could arrange to have the dog on attachment to our divisional drugs team!"
Supt Tim Jones, divisional commander for Bridgend, said: "The seizure of this amount of controlled drugs will have a substantial impact on an obvious organised crime group within the borough.
"We will be making every effort to bring those involved in the possession and distribution of these drugs to justice."
The street value of the seized drugs, which had been concealed in bags, is believed to be in excess of £500,000.
Anyone with information on the drugs is asked to contact Bridgend CID on 01656 655555 or Crimestoppers anonymously on 0800 555 111.
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