Shocking video footage of the incident, which took place outside Macquarie University in Sydney, Australia, has since been posted online and been viewed more than 1.3million times.
Ramzy Alamudi, who filmed the incident on his phone on Friday afternoon, said he was about to leave the campus to go a celebrate his wife completing her final exams before they were interrupted by a woman "staring at us viciously from a distance".
According to Mr Alamudi, his wife waved to the woman, who is believed to be another student at the university, in an attempt to diffuse the situation.
However, it "turned the situation upside down", prompting the woman to approach the vehicle and the couple to lock themselves inside their car.
The woman was filmed striking the couple's car windows
Unfortunately, this type of Islamophobia isn't isolated to this one individual and incident
The attacker then started to pull on the door handles and strike the car's widows with her fist, while demanding the wife take off her niqab.
In the clip, the woman shouts: "Who are you? Why you got a mask? Terrorist. You got a gun?"
Mr Alamudi said: "I only reacted after she was going to snap off my wipers (it was a rainy day!) I moved the abusive woman away from my wife until several witnesses assisted in the attempt to neutralise her till security came."
A bystander, Emily Grace Guff, saw the alleged incident unfold and also uploaded a video to Facebook.
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Away from the car, the woman is heard shouting "I see her looking so scary" and "I don't know what she carry" at Mr Alamudi.
Ms Guff wrote: “She was demanding this man show her some form of ID, calling out that she didn't belong here, and that we shouldn't let her walk around freely because we didn't know what she could have hiding under her dress."
Mr Alamudi went on to say the abuse was a result of a wider "systemic" policy of Islamophobia.
“Unfortunately, this type of Islamophobia isn't isolated to this one individual and incident," he wrote. "Rather, it is an overarching systematic issue in our society."
Police have since arrested a 35-year-old woman, who was charged with common assault and property damage before being released.
She has been ordered to appear in court in March.