A bomb was defused on Sunday night close to the PSNI station in Keady, south Armagh.
A number of houses were evacuated during the incident following a telephoned bomb warning.
There was no claim of responsibility for the incident, which took place near a heavily fortified PSNI barracks, and no indication by the PSNI of the size of the device.
The attack was the first such attack by the breakaway IRA groups for a number of months. It followed a series of bomb alerts in recent weeks which have caused disruption, particularly in Derry.
Sinn Fein Newry and Armagh Assembly member Cathal Boylan said: “Once again the future of Keady barracks must be called into question following this incident.
“The barracks in Keady serves no function which could not be provided from Armagh, so I believe that now is the time to look at the permanent removal of the barracks which is nothing more than an eye sore in the village.”
While local residents are convinced the base serves little purpose other than as a target, unionists insisted the base should be retained.
Local unionist Danny Kennedy thanked the PSNI and British Army for ensuring that the device was found and made safe. “Keady PSNI station has been identified by the Policing Board as listed for closure,” he said. This development clearly indicates that such a move would be premature.”