Police forensic teams are searching a house and garden in Barrowcliff following the arrest of a local man on firearm charges.
The heavy police presence has closed off the property in Oxcliff since last night.
One neighbour, who did not wish to be named, told The Scarborough News: "The man who lives there was arrested yesterday.
"It seems like the police waited for him to go to the shop in Wreyfield Drive before picking him up, they wanted him out of the house.
"They have not told us anything but they have been digging in the garden, I've never seen so many police coming and going at one house."
A North Yorkshire Police spokesman said: "Police executed a warrant at an address in Oxcliff, Scarborough yesterday.
"A 41-year-old man was arrested on suspicion of being in possession of a firearm and Class B drugs.
"Police remain at the scene whilst the investigation continues."