The incident began on Grange Road in the Old Village around 05:00 when residents say they were awoken by torches being shone in their windows.
Police have blocked off each end of Grange Road, where debris appears to have been thrown from the roof tops onto the street below.
It is understood residents have been told to stay inside their properties whilst the incident is on going.
UPDATE @ 07:15 – Officers have now detained a male, bringing about a peaceful end to the situation. He has been placed into a cell van and is being taken to Newport Police Station.
Grange Road has re-opened to pedestrians and traffic.
UPDATE @ 10:57 – A 31-year-old man has been arrested on suspicion of causing criminal damage.
A spokesman for Hampshire Constabulary said:
“We were called to a public order incident at the Braemar guest house on Grange Road in Shanklin shortly after 4.40am this morning Monday (August 20).
“A group of men were reported to be causing a disturbance outside and someone then climbed onto the roof of the building and damaged roofing tiles.
“A 31-year-old man from the Isle of Wight was subsequently arrested on suspicion of causing criminal damage and remains in custody at this time.”