The 2.7 magnitude earthquake was recorded roughly four kilometres southwest of the town site.
Natural Resources Canada says it happened today at 5:42 p.m. MT.
Banff Mayor Karen Sorensen says the small earthquake was felt by residents.
"It was an interesting sensation," she said. "I think most of the community, myself included, we were all just sitting down to dinner, or getting home from work, and there was definitely a rumble. I would say two to three seconds at most."
She said many describe it as a "very large truck driving by your home."
Sorensen said the fire department and town manager looked into the situation immediately, but there is no damage, injuries or cause for concern.
She said some people living in Harvie Heights in the nearby town of Canmore also felt the quake.