Two men arrested in Torquay under the Terrorism Act have been released without charge.
The pair, both local to the area, were arrested on Thursday and residents in Lymington Road were evacuated while explosives experts searched the address.
Devon and Cornwall Police released a statement late on Friday which said: "Police have today released two men from custody who were arrested without charge under section 41 of the Terrorism Act on Thursday the 3rd of January.
"House searches in the Torquay area have now concluded and a criminal investigation will continue.
"Police would like to stress there is no risk to the public in relation to this incident and thank them for their continued assistance."
An 18-year-old man from Torquay was arrested on Wednesday on suspicion of criminal damage related to a spray-painting.
Following interviews with the man, a warrant was issued to search an address in Lymington Road on Thursday, which required the evacuation of a small number of neighbouring properties.
A second man, aged 20, and also from the town, was later arrested and both were held under Section 41 of the Terrorism Act 2000, which allows a police officer to arrest anyone he "reasonably suspects" to be a terrorist.
No explosives or bomb-making equipment were found.
Police are understood to have searched a further four locations connected to the two men on Friday afternoon.