Police allege Jeremy Lee Singh, 43, had hold of the unpainted instrument when he entered Clearwater Aquariums and Manjits Indian Restaurant on Sunday afternoon and threatened staff.

Court documents said Singh went into the aquarium shop just after 2.30pm and tried to close the door behind him, telling the owner he was trying to hide from police.

He allegedly refused to leave when asked, told the owner he was "done for" and snapped the store's CCTV camera from its hinges, leaving the shop owner fearful Singh was going to assault him.

Singh eventually left via the back door, walked 50m up the road and entered the rear of Manjits. He allegedly locked himself inside the restaurant toilet and yelled.

Staff immediately locked the door into the dining area and called police. It is alleged Singh then walked out of the toilet cubicle, began banging the end of the didgeridoo on the ground and said "I'm gonna' kill you, stay away, don't come any closer".

Officers arrived and attempted to arrest Singh, however he allegedly put the didgeridoo between him and the arresting policeman in an attempt to evade apprehension.

He was eventually subdued, taken to Wollongong Police Station and charged with affray, using a weapon to commit an offence, property damage and resisting police arrest.

Singh's lawyer told Wollongong Local Court on Monday his client identifies as Aboriginal and denied the allegations against him.

Singh was remanded in custody due to his lengthy criminal record. The case returns to court in August.