Emergency services attended the scene at Seabegs Road, near to its junction with Greenhill Road, at around 9.40pm on Wednesday, following reports a vehicle entered the Forth and Clyde Canal.
After searching the canal, the car, a Mercedes A-class, was discovered to be empty.
Police conducted a search and traced the 27-year-old male driver. The man was taken to Forth Valley Royal Hospital to be checked over.
In a statement, a Police Scotland spokesperson said: “Around 9.40pm on Wednesday, 6 October, officers were called to a report of a road crash at Seabegs Road, near to its junction with Greenhill Road, where a Mercedes A-class car had come off the road and entered the canal.
“Emergency services attended and there was no one in the car. A search was carried out and the 27-year-old male driver was traced. He was taken to Forth Valley Royal Hospital to be checked over.
“A 27-year-old man has been arrested in connection with road traffic offences.”