Police said the cigarettes had been discovered in a raid in Shrewsbury town centre.
The operation, which took place yesterday, also saw around 13kg of tobacco seized, along with what officers said was a "substantial amount of cash".
The raid was conducted by Shrewsbury police and Shropshire Council's trading standards department.
It has not been confirmed which shop was subject to the raid.
Writing on Twitter, Shrewsbury Police said: "Yesterday we assisted Shropshire Council Trading Standards with a MATES operation in Shrewsbury town where we helped seize 17,000 suspected counterfeit cigarettes, 13kg tobacco and a substantial amount of cash.
"The loss to sellers of genuine products will be well in excess of that."