Mecca police made the arrests after the men were seen walking side by side on a carpet at an outdoor festival in the holy city.
The video shows two young men, dressed in traditional Saudi robes, walking down the aisle to music.
They are flanked by male onlookers who are spraying confetti.
The force did not name the men or say what charges they faced, but had referred the case to prosecutors.
In a statement posted on Twitter, Mecca Police wrote in Arabic: "The man said people attending the event were surprised when a few young men entered the place and tried to perform a "gay wedding scene.
"After the crossdresser and other people involved in the incident were identified, they were all arrested and their case will now be referred to the prosecution."
The country has no written laws over sexual orientation or gender identity.
Local media reported, cops raided the apparent wedding ceremony and arrested those involved after being alerted to the event.
Comment: While the West is indoctrinating school children on transgenderism, homosexuality, and howling about 'progress' with gay marriage and gender pronoun legislation, it's also busy propping up the backward dictatorship of Saudi Arabia:
Also See: Post-nihilism, a template for where we are heading