The woman's gobsmacked husband Ramzy Alamudi took out his camera phone to film the aggressor, who appeared to be angry at her covering her face with a niqab.
Ramzy, who was in the driving seat of the parked Toyota Yaris, posted the one-minute 37 seconds footage to Facebook where it sparked outrage online.
He said to the camera: "This lady has told my wife to take off her scarf."
The raging Asian woman repeatedly smacked the windows of the car parked in Macquarie University, Sydney, Australia, before trying to pull the windscreen wipers off the front.
Mr Alamudi is heard saying "Call security" but his wife replies: "Just drive, just drive."
The Muslim woman asks: "Who are you?" but then the aggressor replies: "F*** off."
When Mr Alamudi leaves the vehicle, the woman lunges forward, points towards his wife and says:
"Who are you? Why have you got a mask? Terrorist. You have gun?"
Mr Alamudi then restrained the woman and called security.
Emily Grace Guff wrote: "This deranged woman had the nerve to attack his wife because of the burqa she was dressed in, claiming she "didn't feel safe"around people like her.
"It makes me sick to know we co-exist in a world where this happens so frequently, people thinking they have the right to belittle someone else because of their race or religion."