Ryder Shaw, 20, used a TikTok account to post two images the day after December's terrorist attack, calling for followers to "stand the f*** up" and riot at Cronulla Beach.
The posts threatened violence against Middle Eastern people and Muslims, conjuring dark memories of race riots that sullied the famous Sydney beach two decades earlier.
The Narara man was sentenced in Gosford Local Court on Thursday and will serve no more time behind bars having been refused bail since his arrest in December.
Acting Judge Alan Railton acknowledged the crimes were serious but said the young man deserved a chance to rehabilitate in the community after admitting he "crossed the line".
"What is so aggravating is the timing ... this was a tender situation particularly for Muslims," Acting Judge Railton said.
"(But) imposition of a full-time custodial sentence is a matter of last resort ... this defendant in all other respects was a good member of the community."
Shaw's offending made him a target within the prison and he was under protective custody, his lawyer said.
Allowing him to be released into the community was a fair result and the 20-year-old learned his lesson, Greg Goold told AAP outside court.
Mr Goold said in court his client lived in Queensland when the attack occurred but was so angered he returned south to his home state and began posting.
"WE RIOT, WOG/MIDDLE EASTERN BASHING DAY" the first post read, according to agreed facts.
On the same afternoon, the facts state Shaw posted another image reading: "WE RIOT MUSLIM BASHING DAY".
Both posts called for people to gather on December 27 at Cronulla Beach, where more than 10 people were arrested during riots targeting people of Middle Eastern descent in December 2005.
Shaw deserved leniency in sentencing because he realised the error of his ways and removed the posts within a few hours, Mr Goold said.
"There is no evidence of any substantial harm ... it wasn't a part of a planned criminal activity," he said.
"It was a one-out attempt to obtain a response and that probably wasn't even achieved."
One of the posts was forwarded 135 times but no riots eventuated.
Shaw appeared by audiovisual link from Kempsey prison during submissions but could not return to the screen when Acting Judge Railton gave his final decision, as a corrective services staff strike meant all prisoners were locked in their cells.
A pair of supporters present in court were emotional when Shaw was cleared to leave prison.
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