Police were called on January 1st following reports of a man in a mask with a sword
The man was seen outside house and then ran away after being spotted. He was then seen near another location in the village a short time later.
Firearms and officers and the police helicopter carried out a search.
A 23-year-old man was later arrested on suspicion of aggravated burglary. Detectives are appealing to anyone with any information to contact them.
Detective Constable Ailsa Mason, from Exmouth CID, said: “We are currently piecing together the series of events which occurred in Woodbury Salterton yesterday. Understandably this will have caused some alarm to members of the public who were in the area at the time but I would like to reassure the community that no-one was injured.
“We have been contacted by a number of witnesses so far but we would like to hear from anyone else who saw what happened or anyone who may have seen the man around the village at the time. We are especially keen for anyone who may have captured any images on their phones, CCTV systems or mobile devices to contact us.
“We would ask people in Woodbury Salterton to check their property and vehicles and to report any offences to us."