British army bomb disposal experts defused a pipe bomb during an overnight security operation in Co Derry town centre.
A hotel and other businesses were evacuated as soldiers were called to Maghera.
The alert began after a phone call was made warning that explosives had been left.
Police and soldiers moved into the town's main street, leading people in the area to safety before the bomb disposal team went to work. Parts of the device have been taken for forensic tests.