The Australian Christian Lobby has taken issue with Darwin City Council for rejecting an application by a "March for Jesus" group to take part in a Christmas pageant on November 14.
The council's chief executive has defended the ban, saying it was "not about religion" but about the group's intimidating chanting and behaviour at the 2025 event.
But the Australian Christian Lobby's Northern Territory director Nicholas Lay said on Wednesday the council decision was "bizarre".
"They've cited the nature and volume of chanting by members as well as the distributing of promotional merchandise," he told AAP.
"This is a shameful example of Darwin Council discriminating against a Christian group and seeking to take the Christ out of Christmas."
Group organisers were simply sharing the gospel message of Jesus, a very common practice around Christmas, and handing out gospels of John, not promotional merchandise, Mr Lay said.
"Regardless of whether people believe or not, the birth of Jesus is universally acknowledged as the reason for the season."
March for Jesus member Scott Belshaw told AAP there was no merchandise given out to promote particular churches.
"It was simply us handing out literature on the bible.
"I believe no one should stop us from having the right to march at a Christmas pageant, celebrating Christmas."
City of Darwin chief executive Simone Saunders said the ban stemmed from complaints after the 2025 event of "overbearing, intimidating and confronting behaviour" not aligned with the inclusive and fun family event.
That included reports of offered merchandise being refused then thrown at a child, which was not in the spirit of the pageant, she told Darwin radio Mix 104.9.
Out of 30 floats at the event in 2025 the March for Jesus float was the only one that council staff received complaints about.
Council staff were still working with the group to see if it could comply with the terms and conditions and take part in this year's event, Ms Saunders said.
"A Christmas pageant is about spectators coming to watch the procession and the floats. We just want to ensure we've got a family fun event."
Other Christian and faith groups were also participating so the event was "not about religion", Ms Saunders said.
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