Several properties were evacuated and roads were closed following the discovery at Kirk Wynd in Selkirk on Wednesday afternoon.
Members of the public had been urged to stay away from the area.
Hours later, Police Scotland confirmed a bomb disposal team had attended the site and carried out a controlled explosion.
A Police Scotland spokesperson said: "The cordon has now been lifted around Kirk Wynd, Selkirk and residents are returning to their homes following the earlier discovery of a suspicious package.
"EOD (Explosive Ordnance Disposal) attended and a controlled explosion was carried out. There were no injuries. Enquiries are ongoing to establish the full circumstances.
"We’d like to thank the public for their patience while investigations were carried out and reassure them there is no wider risk."
