Armed police swooped on Holmfirth after a man was seen waving a hammer in the street.
Officers descended on Huddersfield Road late on New Year’s Eve near the Postcard pub after reports from worried members of the public.
They found a man with a hammer threatening to harm himself.
Revellers walking around the town spoke of people running to warn others.
But police said no members of the public were attacked or injured.
Armed officers were on the scene for about an hour.
One eyewitness said on Facebook the incident was very scary.
She added: “Never seen so many coppers, cop cars and guns.”
Another said: “Someone ran by shouting about a man with a hammer, armed police were at houses across from the civic centre.”
The male was taken away for his own safety.