Police had been called to the town's Glenburn Road at about 16:50.
They have refused to comment on reports that the incident involved the attempted abduction of children.
A police presence remains in the area but officers said they were not seeking anyone else in connection with the incident.
Insp Jo Jollie said: "We appreciate that this was a very concerning incident for the local community and we are treating this with the utmost seriousness.
"I'd urge anyone who was in the area around this time that hasn't spoken to officers and may be able to help with the investigation to contact us."
A man has been detained by police after what officers described as a "disturbance" in Falkirk on Friday afternoon.