Islamic leaders say Muslims should not be seen as the enemy after an attack left two police officers in hospital and a young man dead.
Known terror suspect Numan Haider, 18, stabbed two police officers before he was shot dead outside a Melbourne police station on Tuesday night.
Police say the young Muslim man had become radicalised and they are investigating his links with extremist terror organisation ISIS.
Sheikh Abdul Azim, president of the Australian National Imams Council, said there was tension in the community, with an increase in racial and religious abuse directed at Muslims in Melbourne after the attack.
He said people should not be afraid or abusive when they see a Muslim.
"We are calling for people to calm down, just take it easy," Sheikh Abdul Azim told reporters on Friday.
"When you see a Muslim man or woman, it doesn't mean that he's your enemy."
Sheikh Abdul Azim encouraged Muslims to report vilification to police, so it could be dealt with.
He said the Tuesday night attack was "a wake-up call for everyone".
Sheikh Issa Musse said he spoke about the dangers of ISIS at his mosque, and told parents they needed to talk to their children about what they were doing online.
"I told specifically the parents to be more friendly with their young and have ongoing conversations," Sheikh Issa Musse said.
"The parents have to take their responsibility and follow up what their children are doing."
Victoria Police chief commissioner Ken Lay said that issue was not limited to Muslim parents.
"This isn't just an issue with faith groups, this is an issue with young people right across our communities," he said.
Sheikh Abdul Azim said Islamic leaders were trying to engage young people to make sure they did not seek out dangerous ideology on social media.
He encouraged people to look past appearances and realise the actions of a few did not represent the world's 1.6 billon Muslims.
"ISIS is an enemy for the whole world. We are suffering like you," he said.
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