The discovery has raised the stakes in the Jackson probe, which widened earlier this week as the Los Angeles Police Department enlisted the support of the federal Drug Enforcement Administration.
Propofol is commonly used in hospitals to induce unconsciousness in patients before major surgery. Healthcare experts say it should never be used at home and should only be administered by trained anesthesiologists.
"It can be used in lower dosages for sedation, but it is not a drug to be used in a home environment," anesthesiologist David Kloth told MSNBC, saying proper administering of the drug use was "incredibly complex."
"It requires a continuous monitoring of the blood pressure and the person's oxygenation and possibly an EKG (electrocardiogram) because of the potential cardiac effects," he added.
Jackson died on June 25 after suffering an apparent cardiac arrest. Los Angeles coroners have said a final cause of death will not be known until exhaustive toxicology tests from his autopsy are completed in "several weeks."
Jackson's family also hired a private pathologist to carry out a separate autopsy but no results of the findings have been made public.
The aftermath of Jackson's death has seen intense speculation about the role of doctors who treated the star.
Police have questioned Jackson's personal physician Conrad Murray but have stressed he is not suspected of criminal wrongdoing.
Associates of Jackson and his family have repeatedly accused unidentified medical professionals of acting as "enablers" by making prescription drugs readily available.
Family adviser and activist Reverend Jesse Jackson, who is not related to the musical clan, said Saturday the Jacksons still harbored concerns.
"The unanswered questions have not been answered and that's why the investigation is expanding," Jackson told MSNBC on Saturday. "It's kind of getting bigger and bigger."
The Los Angeles Times reported on its website Saturday that investigators were focusing on "at least five doctors" who prescribed drugs to Jackson.
An unidentified source told the newspaper "numerous bottles" of Diprivan -- the brand name for propofol -- were found at Jackson's home.
Exact details of Jackson's funeral service have not yet been released although officials on Friday announced plans for a public memorial on Tuesday at Los Angeles's Staples Center sports arena.
In a clear attempt to deter large numbers of ticketless fans from besieging the venue and creating a logistical nightmare, city officials said the entire area would be put on lockdown.
"If you do not have a ticket... not only will you not be allowed at these venues, you will not be allowed in this area," Los Angeles Police Department chief Earl Paysinger said.
The warning came as officials revealed tickets for the event would be distributed via an Internet lottery, with fans registering at the Staples Center's website to enter a draw from Friday onwards.
Some 11,000 tickets are to be made available for the event inside the main venue while an additional 6,500 tickets would be distributed for fans watching the service on giant screens at the neighboring Nokia Theater.
-------------------------------------------------------------------------------------------------------------