Emergency services have been at the scene for a number of hours.
Police were initially called to Market Place in Inverurie at 2.30pm today, after receiving a call from a concerned member of the public.
A bomb disposal unit from the Royal Logistics Corp has since been dispatched from Edinburgh and is currently on the scene at a property at Crosslet Court.
The grenade recovered from the property.
A police spokeswoman said: “We are currently still in attendance at Market Place in Inverurie, after receiving reports of a military ordnance.
“We called in a bomb disposal team to remove the object, and they had to travel a distance to reach the town, arriving within the last hour.
“There is a small cordon while officers deal with the situation, but no road closures.
“No-one is in immediate danger from this incident.”
