Acrid smoke lingered around Adass Israel Synagogue a day after it was firebombed as worshippers endeavoured to go about religious observations with dignity in the face of the alleged anti-Semitic attack.
Israel's prime minister hit out at the Australian government over the blaze overnight on Friday, saying he expected action to prevent future violence, as investigators pursued two masked intruders who remained at large.
Orthodox Jewish parents and children walking through the Ripponlea neighbourhood in Melbourne's southeast on Saturday paused to take in the damage.
Other locals dropped off bunches of flowers and uttered in shock that such an attack had happened on their doorstep.
Police conducted patrols of the streets surrounding what is the area's main synagogue, while security guards paced out front of the temple, which has also been cordoned off with temporary fencing.
Another place of worship was set up nearby in time for the Sabbath, while there was a visible police presence at other local synagogues and education centres on Saturday.
One man told AAP the community was "feeling very traumatised".
"It's a big loss," he said.
Even though those responsible for the attack remained on the run, the man said the harm to the synagogue was the cause of most anguish.
The synagogue was badly damaged in the early hours of Friday as two offenders allegedly broke in and set it alight, police say.
Two of its three buildings were gutted and two congregants who were inside at the time preparing for morning prayers were evacuated, one suffering minor injuries.
Israeli Prime Minister Benjamin Netanyahu denounced the fire as an "abhorrent act of anti-Semitism" and said he expected authorities "to use their full weight" to prevent future attacks.
He also hit out at Australia's support for a United Nations resolution calling for an end to Israel's occupation of Gaza and recent denial of a visa to Israel's former justice minister Ayelet Shaked.
Ms Shaked was barred from entering Australia for a speaking tour on the grounds she could "seriously undermine social cohesion", according to Immigration Minister Tony Burke, who cited her past public comments about Palestinians.
Also on Saturday, former federal treasurer Josh Frydenberg called on Prime Minister Anthony Albanese to set up a task force devoted to stamping out anti-Semitism and declare the Ripponlea attack a terrorist act.
Victoria Police Detective Inspector Chris Murray said on Friday the fire was believed to be targeted and investigators had not ruled out terrorism as a motive.
The suspects poured accelerant on the floor inside the synagogue and set it on fire before fleeing when they were disturbed by a congregant.
Yumi Friedman, founder of Yumi's dips, was one of those inside the building and described hearing a "big bang on the door with a sledgehammer" before fleeing to call the police, only to return to find the building fully alight.
The attack on a place of worship, which was built by Holocaust survivors, has led to a heightened sense of fear in the community, Executive Council of Australian Jewry president Daniel Aghion said.
Victorian Premier Jacinta Allan confirmed increased police patrols to bolster safety into the coming week and pledged $100,000 towards rebuilding.
Politicians and religious leaders unanimously condemned the anti-Semitic arson attack, with Mr Albanese offering to send in Australian Federal Police to help with the Victoria Police investigation.
