Dyfed-Powys Police confirmed a single shot was fired on Saturday evening (March 28) following a call about disorder in the Bunkers Hill area of Milford Haven.
Officers were called to the scene at around 5.45pm after concerns were raised about an individual allegedly in possession of a knife.
Firearms officers were among those deployed as police moved to contain the situation.
A police spokesperson said that during the incident, at approximately 6.32pm, an officer discharged a single shot.
Dyfed Powys Police have stressed that the firearm was not aimed at any individual, and no injuries were reported.
The force say that a police presence remained in the area into the following day as enquiries continued.
The incident has now been referred to the watchdog, the Independent Office for Police Conduct, which will decide whether to launch an independent investigation.
Deputy Chief Constable Gary Phillips said an investigation is already underway.
He said:
“We have initiated a prompt investigation into the circumstances that led to the firearms being discharged, and have referred the incident to the Independent Office for Police Conduct.
“We will work with them as we continue to establish the circumstances leading up to the discharge.”
Police have not released further details about the individual involved in the reported disorder.
It is also not yet clear what led to the decision to discharge the weapon, although officers had been responding to reports involving a knife.
Incidents involving the discharge of police firearms are rare in Wales and are subject to strict oversight.
The watchdog will now assess the circumstances and determine the next steps in the investigation.
Dyfed Powys Police say that residents in the area may continue to see an increased police presence while enquiries are ongoing.
