The incident started around 2:56 p.m. when police say a man who was believed to be armed walked into a home and barricaded himself inside.
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Chopper 6 was overhead as officers surrounded a residence on the 200 block of East First Avenue.
"We heard them over a loudspeaker saying someone's name, asking them to come out," said Dana Greenlee, who lives nearby.
Malvern Police Chief Louis Marcelli said a shelter-in-place order was issued as a precaution.
"I requested our commutations center to do a reverse 911 call to the residents in a four-block area requesting that they shelter in place," said Marcelli.
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During that time, Greenlee says she and her family tried to stay calm.
"I live with my 88-year-old grandmother. Luckily, my aunt was here to help us out today. It was scary," said Greenlee.
It's still unclear why the man walked into the home. Neighbors say the residents who live there were on vacation in Florida at the time of the incident.
The man was taken into custody without incident around 8:30 p.m. He was not been identified.