Hotels and homes in Falmouth were evacuated this morning (10 June) after a suspicious pacakage was found.
A 20-year-old man from Falmouth has been arrested on suspicion of a bomb hoax and has been taken into police custody.
The device was found in the grounds of Falmouth Hotel.
Devon and Cornwall Police say they believe it was hoax incident as the device was "not viable" and therefore safe.
As a precautionary measure, around 100 people were displaced from Falmouth Hotel and surrounding properties.
These people have now been allowed to return to their rooms.
Earlier this morning (10 June), police said in a statement: "In order to maintain public safety, the area is currently being safely evacuated as a precautionary measure.
"This will impact on those staying within the Falmouth Hotel, Madeira Hotel, campervans in the area and neighbouring properties."
The Royal Navy Explosive Ordnance Disposal was sent to the scene.
A smaller scene guard will remain in place until the item is collected and removed.
Falmouth is around a 40-minute drive from the Carbis Bay Hotel, where leaders from the world's most powerful democracies will gather for the G7 summit on Friday.
The police have thanked the public and those who were evacuated for their assistance.