The alert urged residents to take shelter, and said the alert was not a drill.
US military spokesman David Benham said the US Pacific Command "has detected no ballistic missile threat to Hawaii".
According to reports emerging on social media, some people even tried to seek shelter from the "incoming missile" in storm drains.
The false alarm comes at a time of heightened tension between the United States and North Korea, with both USA president Donald Trump and North Korean leader Kim Jong-un issuing provocative statements referencing nuclear war, which made the alert all the more plausible and frightening to people on the ground in Hawaii.
Hawaii EMA has sent a correction for their false alarm about a ballistic missile.
"NO missile threat to Hawaii", the state's Emergency Management Agency tweeted at 8:20 local time (1:20 ET).
Although news of the alarm being false spread quickly, the terrifying effects are likely to last a long time.
A push alert that warned of an incoming ballistic missile to Hawaii and sent residents into a full-blown panic Saturday was a mistake, state emergency officials said. Earlier message was sent in error.
A video of a television soccer match showed what the alert looked and sounded like scrolling across the screen. He said he was still in bed when the phone started going off "like insane". "It was a false alarm based on a human error". We're trying to figure out where this came from or how this started.
"There is no missile threat", he tweeted.