The item was found on a wall in The Diplocks, Hailsham at 6.36pm (Monday, January 28).
As a result, a 100 metre cordon was put in place and households within the surrounding area were evacuated.
At 10.48pm, Sussex Police said a controlled explosion had been carried out.
The force added: “It was discovered that it was not a viable explosive.”
The cordon remains in place while EOD vacate the area.
Police advised residents to keep watching for updates for when they can return home.
In the meantime, Wealden District Council has opened up a rest centre only for those currently displaced by the cordon in place due to tonight’s incident, it confirmed on Twitter.
The rest centre can be found at the WDC Civic Hall, Vicarage Lane, Hailsham, BN27 2AX.