Qari Ishtiaq, the mastermind of the attack on Pakistan Army headquarters in Rawalpindi, was arrested in Lahore on Tuesday, the police said.
Ishtiaq guided his associates on phone during the two-day assault on the fortified building, in which 19 people, including at least eight soldiers and eight militants, were killed.
Police also recovered four Kalashnikov rifles, 10 grenades, a rocket launcher and explosives from his possession.
Seven other associates of Ishtiaq were arrested in Gujranwala, Mailsi and Sargodha areas based on the information given by him during interrogation.
Ishtiaq is a senior leader of the Tehrik-e-Taliban in the Punjab province and a resident of Bahawalpur.
The Online news agency said a search operation is on to nab his other associates.
The militants stormed into the army headquarters on October 10 angered by the military operation in the tribal areas bordering Afghanistan. The militants seized the building and taken dozens of people hostage.
The security forces ended the two-day drama after eliminating all the militants in the building next day. Three of the hostages were killed.