The resort is near Mexico's most popular tourist destinations, like Cancun, Cozumel and Tulum.
Emergency crews attend to the scene of an explosion at Playa del Carmen, Quintana Roo, Mexico, Feb. 21, 2018, in this still image obtained from social media video.
Be aware of your surroundings and exercise caution. The discovery occurred after an alleged cartel bomb blast ripped through the ferry, Barcos Caribe, on February 21, leaving 24 injured-including seven U.S.
"We take our obligation to provide information to USA citizens seriously as evidenced by the clear, timely, and reliable safety and security information we release worldwide", State Department spokesperson Heather Nauert said in a statement to ABC News, adding that the agency will provide "important updates when information becomes available".
It also required US government officials cease traveling to the city "immdiately", according to the alert. It also advised US citizens to purchase travel insurance which includes medical evacuation.
The explosion took place when passengers were disembarking from the ferry, according to the municipality of Solidaridad, which includes Playa del Carmen.
"We do not know why the USA government made a decision to emit this alert".
The State Department official said Wednesday's security alert for Playa del Carmen is different from a travel advisory and is meant to inform US citizens "of specific safety and security concerns in a country, such as demonstrations, crime trends, and weather events".
On March 1, undetonated explosive devices were found by Mexico law enforcement on another tourist ferry.
Both federal and state officials continue to investigate the incidents.
Last summer, the department also cautioned vacationers to be careful when drinking alcohol in Mexico.
"According to Government of Mexico statistics, the state experienced an increase in homicide rates compared to the same period in 2016", the warning for Quintana Roo states.