The Argyle St area in central Whanganui was cordoned and searched by the Armed Offenders Squad after reports of gunshots on Monday night.
A spokeswoman said Whanganui police received reports of gunshots ringing out about 11.10pm.
The spokeswoman said no firearms were found in the area. However, a car was badly smashed up with broken windows.
An Argyle St address was searched and the occupants were spoken to by police. There were no arrests or injuries.
An Argyle St resident, who asked not to be named, said she was just drifting off to sleep when she heard "an enormous bang".