A 24-year-old man has been arrested by Devon and Cornwall Police on suspicion of the theft of two flags in Dartmouth.
Police received a report about the theft of a Pride flag and a Royal Naval flag from the Oxford Street area outside the Harbour Office in Dartmouth between 11 pm on 9 June and 10.40 am on 10 June.
The force said both flags have since been recovered, and this is being treated as a hate-related incident.
A spokesperson for the police said: "This is an ongoing investigation and we would ask people not to speculate about this matter."
The Harbour & Navigation Authority had previously said in a social media post, "This all shows how important #pridemonth is. Please join Dartmouth Pride in celebrating that all are equal. #lovewins."
The Pride Flags are now flying again on the flag pole directly opposite the Harbour office.
The Dartmouth Pride Festival will take place on 30 June.