Armed police laid siege to a flat after receiving a report that a burglary was taking place.
Several dozen residents watched from behind a cordon as an armed response unit surrounded the property at around 1pm on Saturday in Church Road, Worthing.
Officers entered the flat and two men came out with their hands in the air as a police marksman trained his gun on them.
The men were arrested on suspicion of burglary and were taken to Worthing police station for questioning.
A spokesman said: "It was something out of nothing. We received a report that there were people inside in a suspected burglary.
"But after we had questioned them, it turned out they were in there legitimately and they were subsequently released."
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