Police mounted a major operation in Hamilton after they were given what turned out to be false information that a woman and baby had been abducted.
Detective Inspector Gary Lendrum said police received information last night that a woman and her three-month-old child had been kidnapped.
After "extensive enquiries" and searches in Waikato it was discovered the information passed to them was false.
The woman and her child were found this morning in Auckland safe and well and weren't aware of the situation or the search for them, Mr Lendrum said.
Bruce McCulloch, a resident in the Hamilton suburb of Nawton, said he was was woken by a dog barking and looked out of his house to see the Armed Offenders Squad.
He said someone on a loud hailer was "going on and on, for at least an hour" telling people next door to come to the door with their hands on their head and they wouldn't be harmed.
Mr McCulloch said it appeared his neighbour was not home, and the officers went on to check other houses.
Police said two men and a woman were helping them with their enquiries and they were not ruling out the possibility of charges being laid.