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Police recovered a grenade and bullets from a dustbin in the city's Paltan Box Culvert Road on Sunday midnight.
They were discovered by a group of street children who contacted police around 11:30pm, said Kazi Shahiduzzman, inspector (investigation) of Paltan Police Station.
Later, a bomb disposal unit went to the site and recovered the grenade and 55 bullets of rifle, pistol and shotgun.
The grenade was defused around 12:30am.
Police said they had launched an investigation and were collecting surveillance camera footage to find out who dumped the bomb and bullets, reports UNB.