Police and the bomb squad raced to Akitio Beach, east of Dannevirke, after reports of an unexploded bomb this evening.
The Akitio and Pongaroa volunteer fire brigades attended along with four police cars.
The bomb had been discovered at the Akitio Camping Ground which was full of holiday makers who were evacuated.
After discovering the bomb was a dud Akitio fire chief Murray De-admin stood the crews down.
However, the bomb squad has been unable to be turned back.