"It sounded like it was going to explode, it was so loud," Windle told Channel 9.
"As it got closer I could tell that it was coming out of the plane, so I thought it was missiles because we're so close to the army barracks as well."
Another resident, Amanda Blunt, said the commotion in the sky set off her dogs as the aircraft made measures to turn back to the tarmac.
"We heard it in Marsden. Went outside to see what the dogs were barking at thinking it was fireworks in the distance, and saw flames coming out the back of the plane as it flew over," she posted to Facebook.
An anonymous passenger said there was a "loud bang about 20 minutes before descending", and that "everyone on the flight tried to remain calm, however we weren't aware what was going on".
Another claimed a number of people on-board "were not in a good headspace after landing … certainly shaken by it all".
Nauru Airlines CEO Geoff Bowmaker was quick to reassure customers the hiccup never warranted an emergency and at no time were passengers at risk.
"The pilots followed normal practice, which was to land under normal power and standard operating procedures," he said in a statement.
"The aircraft landed safely and taxied to the gate without incident, where its 48 passengers disembarked.
"The Captain informed passengers that a compressor stall can involve the appearance of sparks or flames because of the disruption to airflow through the engine.
"At no time was it necessary for an emergency to be declared."
The plane was taken to a hangar for inspections to its engine before being cleared for another departure.
