Officers attended a house in Shakespeare Street, Holmewood, just after 9.25am on Monday.
A Derbyshire Constabulary spokesperson said: “A man has been arrested on suspicion of making or preparing explosives with intent.
“He remains in police custody.
“A cordon is in place and the explosive ordnance disposal team are on site.
“A number of houses are currently being evacuated in Shakespeare Street.
“There are road closures currently in place at the junction of Rosewood Way, Shakespeare Street and Lawrence Avenue.
“There is also a closure in place between Lawrence Avenue at the junction with Masefield Avenue.
“Residents are asked to stay away from the area and those evacuated will be contacted when it is safe to return to their homes.”
The Derbyshire Times asked the force if this incident was linked to events on King Alfred Street in Derby on Sunday, when a man was arrested on suspicion of making or possessing an explosive substance.
“There is nothing to suggest there is a link to the incident in Derby, at this time,” the spokesperson responded.
No further details are available at this stage.