Police attended a property in Shakespeare Street, Holmewood, on Monday morning.
Officers said a number of ‘suspicious items’ were found at the house.
These required the attendance of an Army bomb squad from Chetwynd Barracks and a number of nearby properties were evacuated.
On Tuesday night, a Derbyshire Constabulary spokesperson told the Derbyshire Times the arrested man had been released on bail.
According to officers, there is no information to suggest this is a terrorism-related incident at this time.
On Monday, Superintendent Jonathan Clark said: “I understand how concerning this type of incident can be and I would like to thank the local community, in particular those who were evacuated, for your patience and support.
“Items were found at the house during a warrant and had to be examined, to ensure they were safe, by colleagues from the explosive ordnance division.
“Just before 3.50pm on Monday, officers lifted the cordon and residents are now able to return to their homes.”
The Derbyshire Times asked if there was any link to a similar incident on King Alfred Street in Derby on Sunday when a man was arrested on suspicion of making or possessing an explosive substance.
Supt Clark added: “Though concerning and in view of a similar incident in Derby on Sunday, I would like to reassure the public that there is no information to suggest that this is a terrorism-related incident at this time.
“There is also nothing to indicate it is linked to Sunday’s incident.
“I would urge anyone who has any information that may be of use to the officers investigating the incident to contact the force.”
On our Facebook page, residents said they were shocked by the incident.
One said: "It's scary to think something like this could happen near where you live."
Other people questioned why someone would allegedly be making or preparing explosives with intent.
Residents also remarked how it had been a busy time for police and the Army bomb squad after two empty mortars were also found in a skip in Brimington on Tuesday.
Anyone with information about the Holmewood incident should contact police, quoting reference 228 of December 6.