Noel Tirado, 41, was arrested after he was found hiding under blankets on a child's bed at an acquaintance's home in Bethlehem earlier this month, according to the attorney general's office.
He was allegedly wearing a gun holster, and a loaded 9mm handgun was concealed in a nearby bedroom, officials added.
Officials say Tirado had manufactured video recordings of a very young child. He also allegedly had other videos and photos of child sexual abuse material.
He has been charged with manufacturing and possession of child sexual abuse material, as well as possession of a prohibited firearm and criminal use of a communication facility. His bail was set at $1 million cash.
Tirado also had warrants out in Lehigh, Northampton and Monroe counties, for escape, terroristic threats, and simple assault, according to officials.