It happened on Franklin Street, with police alerted at around 4am today.
When officers arrived, a man climbed on to the roof of a building.
A cordon was put in place while emergency services - including a police negotiator, firearms officers and a police dog team - responded.
At around 10am the man, aged 35, was arrested on suspicion of assault and taken to Scarborough Hospital to be checked over.
The cordon was lifted shortly after. Officers remain at the scene of the incident.
Superintendent Andrea Kell said: “I’d like to thank members of the public for their patience whilst emergency services responded to the incident on Franklin Street this morning.
"A cordon was in place and a police negotiator was sent to the scene to help resolve the situation. The cordon has now been lifted.”
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