A bomb disposal unit was called to an address in Kirkton yesterday after reports of “unexploded pyrotechnics” in a house.
Dozens of police officers secured a perimeter around the house on Thornton Road while Royal Navy officers worked on an item inside a white jeep.
Neighbours said there had been a police presence in the area from around 10am.
After being called by police, two bomb disposal vehicles arrived at the scene shortly after 3pm.
One neighbour said a woman at the address was taken into a police vehicle at around midday.
The man, who declined to be named, added: “The road was closed off at the Newton Road end of Thornton Road.
“A woman went into a police car, I’m not sure if she was arrested or just assisting officers with their enquiries.
“I was shocked to see what was going on as the hours passed residents were all starting to question what was happening.”
Kaitlin McNab, who lives in the area, said: “The police had been in and around the footpaths near the play park all day and I was certainly a wee bit concerned by what was going on.
“When the bomb squad arrived we were told by the police to stay inside our homes.”
Neighbours said a grass area which is positioned directly opposite the address on Thornton Road had been closed to the public throughout the operation.
Two Navy staff worked inside the rear of the jeep before a police officer started gathering evidence from the boot of the vehicle.
Police and Royal Navy staff removed the jeep from the scene shortly before 4.30pm.
A spokeswoman for Police Scotland said: “We received a report of unexploded pyrotechnics being found in a property in the Thornton Road area of Kirkton, Dundee, at around 11.15am on Thursday.
“Officers are assisting an Explosive Ordinance Disposal (EOD) team at the scene and residents are being advised to remain indoors at this time.
“There is not believed to be any serious risk to the public.”