It happened just after 6 a.m. Thursday on the 3100 block of North 6th Street.
Authorities said police were on the scene serving a warrant.
Philadelphia Police 1st Deputy Commissioner John Stanford said the officers entered the property and engaged with people inside.
"There was some type of police confrontation with individuals inside the location which led to a police discharge," Stanford said.
He said there were no injuries to officers or civilians.
"Fortunately, no one was injured," Stanford said.
Stanford did not elaborate on the circumstances other than saying police discharged their firearms.
He said the information is very preliminary.
No further details were released on the three suspects taken into custody.
Stanford said it remains a very active scene and more details will be released as the investigation continues.