We received several calls at about 8.37am on Sunday 10 July reporting a man with a large knife or machete in Green Street, Totterdown, Bristol.
The man went to a house in the street and witnesses reported calls for help from the property.
Officers, including armed officers, were deployed and a man was arrested at 8.55am. He remains in police custody.
A machete was seized but there were no reported injuries.
Chief Inspector Nigel Colston said: “We’d like to thank the members of the community who called 999 promptly to report this incident and the members of the nearby Mosque who remained calm and sensibly stayed inside to ensure everyone stayed safe.
“You’ll see an increased police presence in the area today but this is for further enquiries and community reassurance. While we’re keeping an open mind in our investigation, there is nothing to suggest any risk to the mosque or anyone attending it, or to the wider community.”
He asked anyone who saw the incident or who has dashcam or other footage to get in touch as it could help the investigation.