ARMED police were called to Penistone town centre following reports of a man carrying a handgun in the street.
Officers arrived on High Street just after 4.30pm on Wednesday and found the suspected weapon was a novelty cigarette lighter.
Shoppers spoke of seeing armed police in the area around the market and Tesco car park.
A 26-year-old man was arrested on suspicion of possessing an imitation firearm in public before being bailed.
A South Yorkshire Police spokesman said enquiries were ongoing.