The man who sparked the Levin siege has been found alive - but in critical condition - after emergency services extinguished a fire which broke out at the home.
Cordons were finally lifted around nearby streets - allowing about 80 nearby residents to return home - early on Saturday morning.
"Cordons will remain around the Bledisloe St property and a scene guard will be in place overnight," said police in a statement shortly after midnight. "Bledisloe St residents can expect to see a continued police presence in the street in the coming days, but we want to reassure residents that there is no need for concern."
Police had been negotiating with the man after he barricaded himself inside the Bledisloe St property, forcing the evacuation of nearby residents on Thursday.
A fire broke out at the house about 7pm on Friday but shortly after 10pm police said they had doused the flames and found the man alive inside.
Police said he was been transported to hospital in a critical condition and was being treated for smoke inhalation. "The man's dog was also found alive and is being cared for."
Videos and images seen from the street show the home was on fire and a fire truck was used to help douse the flames.
It came after a tense stand-off during which cordons were put in place as specialist negotiators tried to talk with the man, who was reportedly threatening to self-harm.
Although residents can now return home, cordons remain at the Bledisloe St property.
"There is still work to be done at the property to ascertain whether there are any items in the house which pose an ongoing risk," police said.
One resident on Friday told the Herald she had not even had a chance to go home after work on Thursday when police told her she was being evacuated.
"I told the cops my husband was at home and they said [he] had to leave – so he just jumped in the car. We thought it would just be an hour, so we didn't grab any of our stuff."
She said the council and mayor had been "amazing" and had wrapped support around all those who were evacuated, but she said the situation is still "overwhelming".
"I literally just finished work and this happens – didn't even get to go home at all, I didn't see my day going like this ... I'm worried about my house, what's going to happen - I keep getting mixed messages, we don't even know the full story."
Another resident, Diane, on Friday told the Herald she chose to sleep in her car on Thursday night, alongside her husband, because the pair had thought the situation would be resolved by dawn.
They managed two hours' sleep, turning the car heater on every now and then for warmth.
On Friday afternoon Manawatū Area Commander Inspector Sarah Stewart said police were doing everything they could to resolve the situation safely for everybody involved.
"We are taking this very seriously and have a specialist team working hard to help resolve the incident without loss of life, injury, or damage to property.
"We have asked some residents in the street to leave their homes as a precautionary measure."
Stewart said everything police were doing was to ensure the safety of all those involved and their advice for everyone within the cordon was to evacuate.
"We understand that the incident has been distressing for residents. However, resolving the incident safely for everybody is our number one priority and we thank those affected for their co-operation.
"Police are working with displaced residents and are assisting with pet welfare checks and with retrieving medication left inside the cordon."
Earlier this week police attended another incident on the same street that was cordoned off.