Derek McKinney, 32, from the 7400 block of Gilbert Street has been charged with Endangering the Welfare, Possessing An Instrument of Crime, Recklessly Endangering Another Person, and Possession of Narcotics.
The incident began around 9:30 p.m Tuesday on the 5900 block of West Champlost street in the Germantown section of the city.
Police saw a Toyota double-parked.
As they got closer the officers smelled a heavy odor of marijuana in the air which led them to a white Dodge caravan that was parked next to the Toyota.
Inside the van, police found McKinney and two 3-year-old children, a boy and a girl, in the back seat.
Police say there were explosives in plain sight.
The bomb squad left the scene with what was determined to be homemade explosives.
"They did determine that there were some improvised explosive devices in the vehicle," said Philadelphia Police Chief Inspector Scott Small. "They found what appears to be two quarter sticks of dynamite. They believe these are homemade."
None of the explosives detonated.