Police were called after a suspicious package was discovered on the sidewalk outside the embassy around lunchtime.
Adjacent streets were blocked off and bomb technicians were brought in to x-ray the package.
Following a careful investigation, the technicians determined that the suspected bomb was nothing more than a model of the Statue of Liberty.
“All the blockades have been lifted and police have left the scene. No threat has been directed at anyone,” said Stockholm police spokesperson Towe Hägg to the TT news agency.