Kneecap will face no further action following their Glastonbury performance on Saturday 28 June, Avon and Somerset Police in the UK has said.
The investigation was announced in June after officers reviewed video footage and audio recordings from the sets of Kneecap - comprised of Liam Óg Ó hAnnaidh, Naoise Ó Cairealláin, and JJ Ó Dochartaigh - and the punk duo Bob Vylan at the Somerset festival.
Kneecap member Ó hAnnaidh, who is known by his stage name Mo Chara, was charged in London in May with a terrorism offence for allegedly displaying a flag of Hezbollah, the Iranian-backed militant group that is proscribed as a terrorist organisation in Britain.
He denies the offence and the band says its members do not support Hamas or Hezbollah.
In reference to his bandmate's upcoming court date, Ó Cairealláin, who performs under the name Moglaí Bap, suggested to the Glastonbury crowd last month that they "start a riot outside the courts", before clarifying: "No riots, just love and support, and support for Palestine."
During Bob Vylan's performance at Glastonbury, rapper Bobby Vylan chanted: "Death, death to the IDF (Israel Defence Forces)."
In a statement this afternoon, Avon and Somerset Police said: "An investigation has been carried out into comments about a forthcoming court case made during Kneecap's performance at Glastonbury Festival on Saturday 28 June.
"Detectives sought advice from the Crown Prosecution Service during their enquiries and after that advice, we have made the decision to take no further action on the grounds there is insufficient evidence to provide a realistic prospect of conviction for any offence.
"Kneecap was informed of that decision earlier today.
"Enquiries continue to be carried out in relation to separate comments made on stage during Bob Vylan's performance."
Kneecap posted a screenshot to social media from an email that appeared to be from a senior investigating officer.
In the caption of their post, the Belfast and Derry group said: "One element of the political policing intimidation attempt is over.
"We played a historic set at Glastonbury. Whole area closed an hour before due to crowds. A celebration of love and solidarity. A sea of good people at the world's most famous festival."
Source: Press Association, Reuters