The device was found by a member of the public in their garden on Gordon Avenue, in the Bilton suburb of Harrogate,
A small number of houses were evacuated while officers awaited the arrival of the MOD, which had been called in to make an assessment on the device.
Local residents were advised to stay in doors and avoid the area.
According to North Yorkshire Police, the MOD recovered the device, and the cordon was lifted at approximately 1.40pm yesterday.
"We thank the public for their patience and cooperation," officers said.