Two Men Arrested After Fake Gun Incident at Sydney's Moore Park

Two men are in custody following an incident involving a fake gun at Sydney's Moore Park on Monday evening.

The police operation unfolded at the Entertainment Quarter about 4:45pm, with officers swarming the area following reports a person had a firearm.

In a statement, NSW Police said they found two men, one of which was allegedly carrying a firearm and wearing a bullet proof vest with an American flag on it.

The pair, aged 39 and 35, were arrested and a replica firearm, a vest, and a badge were seized.

Both men were taken into custody and transported to Surry Hills Police Station.

Officers also confirmed the gun involved was fake and there was no ongoing threat to public safety.

A woman eating out in the area with a friend recounted the "terrifying" ordeal.

"But we were like, 'Is he wearing a costume, is it real?' It looked like a pistol.

"He went away and that's when my friend called the police because we didn't know where he was going and he could have a real gun."

The woman said that was when the pair called police to provide details, but the man came back.

"At that point the police were already on their way and we kind of got a closer look at him. He was actually right next to us outside the store," she said.

"That's when all of the police arrived and they got him on the ground and everything was fine.

"Obviously that's terrifying seeing a man with a gun. It was really scary ... I've never seen something like that happen in real life so it was terrifying."

One man driving past said about 15 to 20 police cars raced to the scene.

"It looked all pretty hectic. It looked insane," he said.