Residents on a Monifieth housing estate were evacuated on Wednesday after a potential “unexploded device” was found by workmen.
A cordon was put up around Angus Court on the Victoria Grange development, to the north of the town.
Police officers were called to the scene just before 3pm on Wednesday and bomb disposal experts are also in attendance.
Police later confirmed that the incident was a false alarm with good intent.
A spokesman for Police Scotland said: “We were called around 2.40pm on Wednesday, October 27, to a report of a device found by workmen at a property in Angus Court, Monifieth.
“EOD (explosive ordnance disposal) was made aware. A cordon was put in place, some properties were evacuated and local roads were closed as a precaution.
“This was a false alarm with good intent and there was no wider threat to the public.”
Several residents reported that they had been prevented from returning home, and others were told to leave their properties.
One resident said: “We got turned back just after the health centre and it was shut all the way to the Dobbies roundabout.
“The police told me there was a potential unexploded device and there was a 100m cordon in place and residents couldn’t go to their houses and were being evacuated.”
Another resident said: “We sat in the Costa car park for 30 minutes, as the police wouldn’t let even one of us out of the car to walk home with the dog.
“We were eventually able to return home but lots of police were still visible in Angus Court.”
Victoria Grange is a development of new homes constructed by Taylor Wimpey.
It is unclear whether the item was discovered as part of work on the houses.