Synagogue set alight with 20 people inside
Police also responded to a protest targeting an Israeli restaurant in the city's CBD near the same time.
An unknown man entered the grounds of the Albert St synagogue at about 8pm, pouring a flammable liquid on the front door and setting it alight before fleeing on foot, police say.
Firefighters attended the scene and the fire was contained to the entrance. Police are probing a suspicious fire at a Synagogue in East Melbourne. David Crosling/ NewsWire Credit: News Corp Australia
Police have confirmed about 20 people were inside the synagogue at the time of the incident and were forced to escape through the rear entrance.
No injuries were reported.
An arson chemist will examine the scene and police are reviewing CCTV and other evidence.
The motivation behind the incident is still being investigated.
'Police are engaging with people from the synagogue and other representatives from the Jewish community to ensure appropriate supports are in place,' Victoria Police said in a statement.
'There is absolutely no place in our society for anti-Semitic or hate-based behaviour.' About 20 occupants were forced to flee through the rear entrance. David Crosling/ NewsWire Credit: News Corp Australia
In a separate incident, about 70 protesters gathered on Swanston Street about 5.30pm to demonstrate against police presence at public rallies.
Police said a smaller group then split off just after 8pm and walked to a restaurant on Hardware Lane and began shouting offensive chants.
The front door of popular Israeli restaurant Miznon was smashed during the chaos.
Police were called to the scene and directed the group to leave.
A 28-year-old from Footscray was arrested for hindering police and released on summons.
Others were identified for possible follow-up.
'Victoria Police is disappointed with the actions of protesters in the Melbourne CBD on Friday night,' police said in a statement.
'Victoria Police continued to support the rights of Victorians to protest peacefully but will not tolerate the kind of anti-social and violent behaviour that was witnessed this evening.'
Miznon confirmed they were still planning to open on Saturday. Protesters targeted an Israeli restaurant on Friday night. NewsWire / Nadir Kinani Credit: News Corp Australia Police directed protesters targeting the restaurant to move on, arresting one person. Supplied Credit: NewsWire Wild scenes were reported as the group descended on Hardware lane. Supplied Credit: NewsWire
Ms Allan has labelled the synagogue fire as anti-Semitism, saying it had 'no place in Victoria'.
'Any attack on a place of worship is an act of hate, and any attack on a Jewish place of worship is an act of anti-Semitism,' Ms Allan said.
'This is disgraceful behaviour by a pack of cowards,' she said.
'That this happened on Shabbat makes it all the more abhorrent.'
Melbourne Lord Mayor Nick Reece said he was 'angry' and 'dismayed' about Friday's events.
'The criminal attacks on Israeli businesses in the CBD and the East Melbourne Synagogue are shocking, and should be condemned in the strongest possible terms,' Mr Reece said.
'I am angry and dismayed that once again our community is confronted with the despicable and racist actions of a few people. My thoughts are with the Jewish and Israeli communities, who are hurting deeply after these vile attacks.
'Everyone deserves the right to enjoy the most basic human acts, like practising your faith or enjoying a meal, without being attacked or vilified.'
Executive Council of Australian Jewry co-chief executive Alex Ryvchin called for those responsible to face the 'full force of the law'.
'These events are a severe escalation directed towards our community and clear evidence that the antisemitism crisis is not only continuing, but getting worse. We urge all sides of politics and all Australians to condemn these deplorable crimes,' he said.
'Those who chant for death are not peace activists. Those who would burn houses of prayer with families inside do not seek an end to war.'
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