Early reports suggest the dramatic lockdown was over a suspicious package, and police cordoned off several roads near the packed shopping district.
But police have since stood down the incident – saying the package had been confirmed as “non-suspicious”.
Leadenhall market is near London’s financial district – just a short walk from the Bank of England – and is often very busy during lunch hours.
The market also sits right just yards away from London Bridge where a terror attack struck in June.
Witnesses today described their horror as police stormed the cafes and restaurants in Leadenhall Market today and demanded the evacuate as a cordon was set up.
Customers having their lunch in salad bar Chopp’d told Express.co.uk police entered the cafe and told eveyrone to leave immediately – and take all their belongings and laptops with them.
Several people have taken to social media after being cleared from shops and cafes in the area, with some claiming police had screamed at them to “get out”.
One twitter user said: “Just at #LeadenhallMarket police screaming at everyone to get out
Another added: “Received email from office saying Terrorism Threat in Leadenhall Market just outside my office. Hope everybody is safe.”
One eye witness told Daily Star Online: “I was in the shop Tiger in Leadenhall Market and I heard shouting coming from outside.
“I was queueing up and a policeman turned up on his motorbike and shouted as the cashier to shut the shop immediately.
“He then told everyone to put their shopping down and leave the premises quickly and calmly.
“After the London Bridge attacks, I immediately worried that it could be a terrorist attack and got out of there as fast as I could.
“I need to get my niece a birthday present but I’m scared to go back to the shops now.”
City of London Police tweeted: “We’re at #LeadenhallMarket after reports of a suspicious package. Cordons are in place and the market evacuated – please avoid the area.”
They later added: “Thanks for your patience – the item at #LeadenhallMarket has been confirmed as non-suspicious by officers. Cordon will be lifted shortly.”
The incident comes at the same time cops swoop on another area of London over another bomb scare.
Police have been investigating reports of a suspicious package near Holborn, central London, with specialist officers being scrambled to the scene at 12.35pm today.
Officers were called to Great Queen Street and cordoned off the road – which runs between Covent Garden and Holborn Tube…