At least one school and a children's nursery in Morecambe went into lockdown after a report of a man wielding a knife nearby.
Police were called to Roeburn Drive at 3.05pm on Friday.
Officers carried out a search of the area and enquiries are continuing.
A police spokesperson said they are satisfied there is no wider threat to the public.
Tiny Treasures Nursery and Pre-School at Lancaster and Morecambe College posted on their Facebook page on Friday afternoon to say that the nursery was in lockdown and advised parents not to pick their children up.
The lockdown was later lifted after staff were informed that it was safe to do so, and children left the building.
Later, the nursery posted: "Thank you for all your understanding and cooperation.
"We can confirm that a man wielding a knife was seen in the local area, to our knowledge, Morecambe Road, Scale Hall and Grosvenor Park and cycle track.
"We made the quick decision to lock down the nursery as other local schools were also in lockdown.
"Your children's and our staff's safety is our top priority and we will never take any chances. Many apologies for any panic caused."
Grosvenor Park Primary School was also in lockdown during the incident.
Parents posting on the Beyond Radio Facebook page praised the school for their prompt action.
"I was collecting my daughter from Grosvenor when this happened, the school were absolutely amazing and kept the kids and parents safe until the police arrived," said a parent.
Another said: "Massive well done to the staff at GP who dealt with this brilliantly and kept us all safe and reassured."
A spokesperson for Lancashire Police said: "At around 3:05pm today (13th September) we were called to Roeburn Drive, Morecambe to a report of a man carrying a weapon.
"Officers attended and conducted a search in the area. Enquiries are continuing.
"We are satisfied that there is no wider threat to the public."
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