The high school student was walking home from Westfield Knox along Stud Road when she was set upon by a group of teenagers, Herald Sun reported Monday.
Knox councillor Joe Cossari, condemning the attack, said it was a racial attack.
Cossari said the teenager was punched to the ground and kicked, but did not report the assault to police because she feared reprisals.
"We have to defend the right of all citizens so that our people can walk freely without fear," Cossari was quoted as telling the council meeting.
Mohamad Tabbaa, Islamic Council of Victoria spokesman, said this was not a stray incident. Many Muslims experienced racism from time to time in Melbourne.
He said most physical and verbal attacks were against women who wore hijabs to create fear in the Muslim community.
"We encourage them (victims) to contact us and the police," Tabbaa said.
The report did not mention when the incident happened.