People in Articlave in County Londonderry were allowed to return home after police said the security alert was a "crude hoax".
A suspicious item was reported to have been found at Church Terrace on Thursday evening.
Homes were evacuated and motorists were told to avoid the area during the alert.
The PSNI said: "This was a crude hoax device that caused unnecessary disruption."
It also thanked people for their patience during the incident.