A car displaying a 'Happy Chanukah' sign has been firebombed in Melbourne early this Christmas Day

The attack comes just two weeks after the Bondi Beach terror incident targeting the Jewish holiday celebration.

Police say no one was in the vehicle at the time, and nearby residents were evacuated as a precaution.

Sky's Holly Stearnes says there's reports the car belongs to a Rabbi.

She says the grey Mazda was parked in the driveway of a St Kilda East home, with pictures showing damage inside and its windows blown out.

Detectives have identified a person they believe will assist their investigation. 12-25-25 1345