A former Greens candidate allegedly punched by police at a protest and then accused of resisting will seek compensation for malicious prosecution after her charges were dropped.

Hannah Thomas was charged with hindering or resisting police and two counts of refusing to comply with a move-on direction after police sought to break up a footpath protest outside a southwestern Sydney business on June 27.

Since her arrest, she has suffered a serious eye injury that required surgery after a policeman allegedly punched her.

As all three charges against the activist were withdrawn and dismissed at Bankstown Local Court on Tuesday, her lawyers revealed they would file civil proceedings in the Supreme Court for "malicious prosecution" and assault and battery by police.

Ms Thomas appeared in court

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