The alleged bashing of a transgender woman at a Newtown pub has alarmed the local LGBTI community, who say they have felt increasingly unsafe since Sydney's lockout laws transformed nightlife in the suburb.

The violence that defined Kings Cross during the lockout legislation debate has bled into Newtown, once considered a safe haven for LGBTI people, protesters at a 300-strong rally across the road from the Town Hall hotel said on Monday night.

Stephanie McCarthy, the transgender woman who was left bruised and bleeding after she was allegedly attacked by at least four men at 'The Townie' on Friday night, was still sporting two black eyes as she spoke to the crowd, which had gathered in her support.

"I'm just one of a long line of people who have been bashed just for being who we are," she said.