Police investigating reports of a shooting in Deighton found no evidence a gun had been fired.
Armed police were called to Riddings Road at 8.30pm on Monday to reports of a suspected “drive-by shooting.”
Officers closed off a large part of the street for more than 15 hours while an investigation got underway.
Residents had reported a “loud bang” at the time but police carried out a fingertip search of the area and found no evidence to suggest any gun had been fired.
The police’s Homicide and Major Enquiry Team was involved but the force later said the incident was being treated as an “affray.”
It is believed there was a confrontation between the people in two cars, a red Seat Ibiza and a unknown black car.
The Seat struck a parked blue car and the driver of the black vehicle pulled up and got out to threaten those in the Seat.
The black car then sped off along with a white car that appeared to be travelling with it. They headed off towards Chestnut Street.
No-one has been reported to have been hurt but police said enquiries were ongoing.
Extra high visibility patrols were carried out by Huddersfield Neighbourhood Policing Team to reassure the public.
Det Insp Mark Atkinson, of Kirklees CID, said: “We are working to trace parties involved in the incident and are progressing significant lines of enquiry.
“I would very much like to speak to anyone who saw what took place or who saw the red Seat Ibiza, white car or small black car in the area around Riddings Road, shortly before or after the incident.”
A police spokeswoman added: “We received reports of a firearms discharge but upon investigation there is no evidence to support that and the incident is being treated as an affray.”
A car was later recovered on Crest Hill Road and will be examined by forensic experts.
Anyone who has information should contact the police on 101 referencing crime number 13170339915 or Crimestoppers, anonymously, on 0800 555 111.