A number of children escaped injury when a blast bomb exploded in the Brandywell area of the city on Thursday night sending scrapnel through nearby windows.
The blast happened on Lecky Road at just after 11pm, minutes after a group of masked men entered a house at Lecky Court and threatened the occupants.
Shrapnel from the explosion smashed a window of a house on Lecky Road. A number of children were in the house at the time but were uninjured.
Shards of metal from the blast also smashed a window on the other side of the street in a house which is believed to belong to a member of the 32 County Sovereignty Movement.
It is not thought he was the intended target of the device.
The PSNI sealed off part of the Lecky Road while they examined the scene of the explosion.
Sinn Féin MLA Martina Anderson was at the scene of the blast shortly afterwards and spoke to local residents.
“There was shrapnel that went in through the window of a bedroom. In that bedroom, thankfully, there was no one asleep at the time.
“However in the adjacent window there was a twoyear-old baby in a cot and had the shrapnel gone through that window . . that family at this moment in time are devastated thinking about what could have happened,” she said.
The incident was also condemned by Foyle MP Mark Durkan, who visited the scene on Friday morning. He said that people living in the area were outraged by what happened.
“Yet again, people are shocked and disgusted by this type of attack.
“People are outraged that this device has exploded in a closely built-up area affecting a closely knit community.
“It is no thanks to those who planted this device that we are not talking about the serious injury of infants or worse.
“This was an attempt to show bravado and a way of community control but what we are seeing now is community contempt.
“Those responsible for this attack have no regard for anyone except their own warped and violent egos.”
PSNI chief inspector Jon Burrows said it was lucky no-one was injured by the blast. “These explosive devices, no matter how small they are, can maim and kill and we’re fortunate this morning that no-one was injured,” he said.