Police say a 50-year-old man stepped in to help after witnessing one other man being subjected to anti-Semitic abuse at a grocery store on Glen Huntley Highway, Elsternwick at 10.30pm on Sunday.
Upon doing so, police allege the 50-year-old was punched and knocked to the bottom.
A 33-year-old man was arrested and was aiding police with enquiries.
The sufferer, Coby Gozlan, instructed 9News the assault was surprising.
"I'm in shock that it occurred someplace like right here in Australia," he stated.
"Additionally to occur in such a quiet space."
Police need to determine the one that was on the receiving finish of the alleged anti-Semitic abuse and urged them to come back ahead.
Anybody with info could make a report back to Crime Stoppers on 1800 333 000.