Response and armed officers were sent to Sandwell Road in Handsworth on Wednesday evening after reports of a gunshot being heard.
When they arrived at around 7.45pm officers found no evidence of any firearms but did find a large gathering.
People were spoken to about social distancing and dispersed, West Midlands Police said.
No arrests were made.
A spokesman for the force said: "We came across a large gathering at a street party in Sandwell Road, Handsworth, at around 7.45pm yesterday.
"We spoke to people present around the social distancing restrictions which remain in place and the group dispersed.
"We were initially called to the street following a report of a gunshot being heard. However, there was no sign of any firearms offence."
U2B have attended a large street party assisting @HandsworthWMP @ResponseWMP @firearmsWMP in dispersal of a crowd. The threat of CORVID-19 as 'NOT GONE AWAY!!!' Please Please think of your families! If not yourself! #SocialDistance #coronavirusuk pic.twitter.com/UXGNg9HNg1— Ops Support Unit WMP (@OSU_WMP) May 20, 2020