Police raced to the River Street area of Brechin on Monday amid claims a man was seen with a knife.
Locals reported seeing a large police presence in River Street and neighbouring Nursery Park around 9.30am.
Police confirmed reports of a person, possibly in possession of a knife, were received.
However, no one has been traced in connection with the matter and no assault had taken place, a spokeswoman said.
One woman from the Angus town, who asked not to be named, said: “I came down from Nursery Lane about 10am and the area was swarming with police, and there were more coming over the bridge from Arbroath, with their sirens and lights on.
“They were searching all around Nursery Park.”
‘A guy with a kitchen knife’
Another said: “I saw loads of police.
“Someone said they were looking for a guy with a kitchen knife.
“I live in Nursery Park and it’s obviously a bit scary to be hearing about that in your street, especially when you have young children.”
A third local said the police appeared to be carrying out “extensive” searches of the area for at least two hours.
‘Possibly a knife’
A Police Scotland spokesperson said: “Around 9.30am on Monday August 30, police received a report of one man causing a disturbance in Nursery Park, Brechin.
“Officers attended and carried out a full search of the area, however, there was no trace of the man.
“There was a report that he may have been in possession of a weapon, possibly a knife, and work is ongoing to establish who he is.
“No assault took place.
“Inquiries continue to identify him and anyone with information that may assist us should contact 101 with reference 0907 of August 30.”