The Coastguard has established a 100 metre cordon on the beach at Sandsend after an "ordnance" was found.
Bomb disposal experts are currently on their way to the scene to investigate and the council has suspended parking in that area until further notice. North Yorkshire Police are also on scene assisting.
Adam Turner, senior coastguard operations officer for UK Coastguard said: "We won't know exactly what we are dealing with until the Explosives Ordnance Disposal team arrive. Until that time, we have taken measures to set up a cordon and clear that area of the beach to keep the public safe. We are appealing to people to stay from this area until it has been declared safe by the disposal team.
"We have no further information at this time but we will hopefully provide an update after the ordnance team have assessed the situation."