A man has been arrested and charged after an attack on the popular Lebanese eatery Arabella Restaurant and Bar in Newtown overnight, the second this week.

Police said a 23-year-old man, from Kogarah in Sydney's south, was carrying the drug ice when he was arrested after allegedly smashing a ceramic basin at the rear of the King Street restaurant about 1am on Wednesday.

Mohamed Zouhour at his restaurant Arabella after the vandalism attack on Tuesday morning. Credit:Dallas Kilponen

It is the latest in a string of attacks on the business that Arabella owner and chef Mohamed Zouhour believes may have been racially motivated.

Police said Mr Zouhour and a group of friends were inside the restaurant at the time and heard the commotion.