Officers rushed to Abbey Lane, in Beauchief, after receiving a report there could be a possible improvised explosive device at a house on the road.
Two men and a woman have been arrested on suspicion of making an IED with intent to cause harm.
Police are continuing to search the property, which remains cordoned off, but say no device has been found.
A spokeswoman for South Yorkshire Police said: "Yesterday evening, police received a third party report stating they had information to suggest there could be a possible IED in a house on Abbey Lane. Searches of the house were carried out last night and no device was found.
"Further searches are set to continue throughout the day and a cordon remains in place around the property.
"At this time, no device has been found and officers would like to reassure residents that the wider community are not at risk.
"Two men, aged 28 and 20, and an 18-year-old woman have been arrested in connection with the incident on suspicion of making an explosive device with intent to cause harm.
"They currently remain in custody while detectives gather information and specialist officers carry out a thorough search of the property."