Police withdrew charges against Eyad Shadid on Wednesday after a host of arrested protesters appeared in Downing Centre Local Court that morning.
Shadid was among 26 people arrested after a thousands-strong rally at Sydney Town Hall on February 9, when police pepper sprayed and beat those protesting the visit of Israeli President Isaac Herzog.
Though his charges have been dropped, the others will have to wait another three weeks as police review their alleged offences.
But Shadid's lawyer Nick Hanna hopes this will pave the way for more withdrawals.
"There is every expectation that others will be withdrawn," he told AAP.
NSW Police are reviewing the charges after the Court of Appeal ruled controversial protest restrictions in place at the time of the rally were unconstitutional.
The measures, rushed through NSW parliament after the Bondi massacre, allowed the police commissioner to make a declaration preventing residents from holding authorised rallies for up to three months after a terror attack.
This left protesters vulnerable to arrest for obstructing traffic or pedestrian movements if they marched through the streets.
The Court of Appeal in April found the laws impermissibly burden the right to political communication.
The withdrawal of Shadid's charges did not fall under the police review of the court ruling, but Mr Hanna said charges laid against others also could not stand.
The unconstitutional laws in force during the rally had been used to justify "the most brutal police crackdown on peaceful protesters in decades", he told reporters.
Princey Aydin also appeared in court on Wednesday morning after allegedly throwing a water bottle at police during the rally.
The 42-year-old was arrested during a 5am raid on their house by the riot squad, who were seen smashing down the door in footage criticised as excessive by human rights advocates and Greens MPs.
"All charges against every person charged that night at Town Hall should now be dropped," Greens MP Sue Higginson said.
"The entire police operation was built around unlawful restrictions that had no legal force."
An independent probe is investigating police actions at the rally, including incidents of alleged misconduct.
Police drew criticism for shoving a group of Muslim worshippers performing the sunset prayer while dozens of protesters reported being beaten and pepper sprayed by officers.
NSW Police Commissioner Mal Lanyon said no officers have been stood down due to alleged police brutality at the rally.
10°C