The magnitude 7.5 quake and tsunami warning that followed caused concern in some coastal communities, with alarms sounding and people rushing to higher ground for safety.
But the Alaska Tsunami Warning Centre later said the waves were too small to pose a threat, reaching just six inches above normal sea level in places such as Sitka and Port Alexander.
"Initially, in the first 15 to 20 minutes, there might have been a bit of panic," Sitka Police Chief Sheldon Schmitt told The Associated Press in a phone interview. But he said things calmed down as the town waited for the all clear.
The temblor struck at midnight Friday (1430 IST) and was centered about 95 kilometres west of Craig, Alaska, the US Geological Survey said.
Seismologist Jana Pursley of the USGS said the quake was followed by six aftershocks, the strongest of which registered a 5.1 and came nearly four hours after the initial quake.
"Houses shook; mine had things tossed from (the) wall," Craig Police Chief Robert Ely said. But he added that there were "no reports of any injuries, no wave, no tidal movement seen."
The centre had warned that "significant widespread inundation of land is expected," adding that dangerous coastal flooding was possible.
In its cancellation statement, the centre said that some areas were seeing just small sea level changes.
"A tsunami was generated during this event but no longer poses a threat," the centre said.