The father-of-two (played by Liam Fox) was confronted by knife-wielding youths Josh and Jamie following their ambush on Eric Pollard (Chris Chittell) at David’s shop.
As they hit Eric in the stomach with a baseball bat, a frightened Dan could do nothing but watch on in horror.
Circling Dan during this evening’s continuation, Josh and Jamie appeared with knives after terrorising the villagers.
As the gang brandished a blade and threatened to attack his daughter Amelia (Daisy Campbell) and girlfriend Kerry Wyatt (Laura Norton), Dan decided to phone the police.
However, in a strange twist of events, Dan retracted his police statement before saying the ominous line: “I got it dead wrong.”
Viewers instantly took to Twitter, with one shocked fan tweeting: “OMG! A knife. Go the heck away. #Emmerdale.”
“#Emmerdale that was disgusting. That the producer thought this knife threat was a good idea is ridiculous. Emmerdale isn’t Hollyoaks,” posted another.
A third wrote: “Who the f**k is this lad giving Dan s**t? What an absolute state, he’s about 12 Dan, grow a pair #Emmerdale.”
Later this week, Eric’s daughter-in-law Tracy Metcalfe will visit the barn to see how he’s doing, but will be mistakenly attacked with a bat by Eric.
It comes as reports suggest that Emma Barton (Gillian Kearney) will finally get her comeuppance for killing husband James Barton (Bill Ward) in another “dramatic death”.