The sudden lockdown of Circular Quay on a bustling weekday was a sign that a month after the Martin Place siege, Sydney remains a city on edge.
A large area of the iconic harbour precinct was locked down for 90 minutes on Thursday following the discovery of a suspicious package on a ferry.
The area was reopened after the object was deemed to be of no threat.
Carmel Fowler, from Parramatta, and her sister Mary Bennett, from the Central Coast, were on their way to visit Martin Place, the scene of last month's deadly siege, when police swooped on the quay.
"We just got off a ferry. They were evacuating Circular Quay and everything else," Ms Fowler told AAP.
"This is how we have to live. I think this is it," she said.
Specialist police teams, including heavily armoured bomb squad members and dogs, were deployed to Circular Quay at about 1.30pm after reports of the unattended object on the commuter ferry Friendship.
The area, under the shadow of the Opera House and Harbour Bridge and near the overseas passenger terminal where a large cruise ship was docked, was teeming with tourists and workers as the drama unfolded.
Police later advised the incident had been resolved and the package had not been of "any risk to the public".
Earlier, a large cordon was established, causing disruptions to ferry, train and bus services.
Investigators were set to examine CCTV footage of Circular Quay.
Police refused to provide details of the object itself, saying it was part of the investigation, although the ABC reported that the package was a bottle with liquid and nails inside it with wires hanging out.
The scare comes just days after the terror alert level specific to police was lifted to "high" in line with the national alert, suggesting that a terror attack is "likely" although not imminent.
It follows the recent Charlie Hebdo massacre in Paris and is just over a month since the Martin Place siege ended with the deaths of two hostages and that of gunman Man Haron Monis.
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