Shortly before 2.00pm yesterday, police in Penarth were called following reports of a firearm being discharged in the Redlands Road area.
Police visited a number of addresses in the town. Armed police officers were deployed as a precaution and investigations into the incident continue.
Two people, A 20 year-old man from the Heath area of Cardiff and a 16 year-old boy from Llanrumney, have been arrested on suspicion of possession of a firearm. They have been taken to Cardiff Bay police station
There are no reports of any serious injuries, one male youth has suffered a cut hand.
Redlands Road was closed in both directions between Victoria Avenue and Elfed Avenue at the time.
Anyone with any information or video footage of this incident is asked to contact South Wales Police on 101 or anonymously via Crimestoppers on 0800 555111 and quote incident 675 of 13th August.