The blast took place in Pound Bank Road in the Worcestershire spa town of Malvern last night.
No property was damaged and none was injured in the explosion.
West Mercia Police officers entered a house in nearby Langland Avenue, where they discovered a suspicious substance. A cordon was put in place and homes were evacuated as explosives experts investigated the scene.
The arrested man, from Malvern, was detained onsuspicion of possessing an explosive substance, police said.
Police said they did not believe the explosion was linked to terrorism.
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