A man was arrested on suspicion of attempted kidnap when a mum reported her son was asked to get into a car on the way home from school.
The alleged incident happened on Orchid Walk, Maesyrhandir, Newtown, at around 4pm on Friday, December 15, and involved two high school boys.
A man was arrested and police are now urging witnesses to come forward.
A Dyfed-Powys Police spokesman said: “We are investigating an incident of suspicious behaviour which took place on Maesyrhandir in Newtown at around 4pm on Friday, December 15.
“A 42-year-old man has been arrested on suspicion of attempted kidnap, and has been released under investigation.
“Officers are continuing to carry out enquiries, and would urge any witnesses or anyone with information to come forward.”
Anyone with information that could help with enquiries is asked to contact Newtown JIU on 101.