Crimes motivated by religious hatred have jumped by nearly 600% in London since the July 7th bombings.
They include verbal and physical attacks and criminal damage to property, including mosques.
Scotland Yard figures showed there were 269 such incidents reported since the suicide bombings, compared to only 40 in the same three-and-a-half week period last year.
In the immediate three-day aftermath of the attacks there were 68 faith hate crimes in the capital. There were none in the same period 12 months ago.
Scotland Yard Assistant Commissioner Tarique Ghaffur said: "There is no doubt that incidents impacting on the Muslim community have increased." Most of the incidents were low-level abuse or minor assaults but they had a great "emotional impact" on communities, he said.
"It can lead to these communities completely retreating and not engaging at a time when we want their engagement and support," he added.
The alarming figures emerged as Home Office minister Hazel Blears held the first in a series of meetings yesterday with representatives of Britain's Muslim community.
Those meetings come amid increasing concerns that young Muslims are being targeted by police in stop-and-search operations. But Ms Blears pledged that Muslims would not be discriminated against.
"The counter-terrorism powers are not targeting any community in particular but are targeting terrorists," she said.
Meanwhile, Scotland Yard confirmed that a man arrested in connection with the July 21st attacks was released without charge last night. Police said he was one of two men detained in Stockwell following raids on July 22nd.
"A total of 37 arrests have been made in the UK, of which 16 remain in police custody in connection with this investigation," said a police spokesman.
A decision by Italian authorities to press ahead with action against Hussain Osman, the alleged July 21st Shepherd's Bush bomber, threw his proposed extradition to Britain into confusion. Osman's lawyer, Antonietta Sonnessa, said the Italian authorities believed there was evidence against him on Italian territory and the evidence was such that he should be held in Italy.