Armed police were mobilised to a house in Padiham after reports of a disturbance.
Officers were called at around 7-30pm on Monday to Peel Street to reports an altercation had broken out between two men.
It was believed both men were in possession of weapons so a cordon was put in place around a house the men were seen entering.
One of the men, aged 57, subsequently handed himself over to officers and was arrested on suspicion of affray.
A scene remained in place on Tuesday while officers continued their enquiries.
Sergeant Tom Riley, of Burnley Police, said: “We are still in the process of establishing exactly what happened on Peel Street, however we would like to reassure residents that we believe this to be an isolated incident.
“Anybody who sees any suspicious activity is asked to contact us on 101.”
A 57-year-old man from Burnley was later bailed to December 29th.