Brent Douglas was refused bail in Wollongong Local Court on Thursday on charges of being armed with the intent to commit an indictable offence, wielding a knife in a public place and intimidate with intent to cause fear or physical harm.

Police will allege Douglas produced a 38-centimetre foldable pruning knife while walking in Crown Street Mall.

He is accused of using it to intimidate Caleb Long between 1.55pm and 2.30pm on Wednesday.

Police prosecutor Amelia Wall showed the court two CCTV videos from the mall and a photo of a knife.

One video depicted a man believed to be Douglas, who was wearing a Hi-Vis jumper, pulling out a knife.

The second video showed the man carrying the knife when another man wearing a white cap, believed to be Mr Long, approached him.

The two appear to have a verbal stoush and then walk behind tables and chairs, at which time they become mostly obscured.

They then moved down the street continuing to be hostile towards one another.

The men then walked to Wollongong Police Station where the Mercury captured a video of the duo involved in a verbal altercation.

In the footage, Mr Long can be heard saying "you're pulling knives on me and what, you think you're all tough?".

Douglas' Legal Aid lawyer entered a not guilty plea on her client's behalf and said there was an "issue of self defence".

Magistrate Michael Stoddart refused bail partly because Douglas was already on bail accused of assaulting police.

"He (Douglas) was recently convicted of shoplifting in this courtroom in July," Magistrate Stoddart said.

"In March, he was charged and convicted of assault occasioning actual bodily harm.

"Now we see him in the mall with a knife.

"The community needs to be protected."

Douglas, who works as a landscaper and has a partner and a one-year-old daughter, hung his head and teared up when he heard he would not be returning home on Thursday.

Douglas will remain behind bars until he reappears in Wollongong Local Court again on October 1.