Officers closed part of Battle Road, in St Leonards, after a man armed with a knife locked himself in a property and refused to leave.
The fire service were called to the address at about 9.40am following a report of a fire in the property. An occupant refused to let firefighters in and stayed inside.
Police were then called and attempted to negotiate with him. Officers put a cordon across the road, closing it at the junction with Upper Glen Road.
The fire was put out and police said officers entered the property at about 4.40pm.
A man was arrested on suspicion of a number of offences and is also being treated for a minor injury, police said.
A spokesman added: “The road has now re-opened and police would like to thank local residents and motorists for their patience.”
The incident is not being connected with last night’s stabbing in Battle Road.