Police were called to a public disorder at Dorchester Library after reports a woman threw items from an LGBT+ stand and removed a flag.
The incident happened at around 3pm on Friday 10 February in Charles Street.
In a statement issued today (17 February), Dorset Police say the woman is also reported to have shouted at members of the public and made hateful comments to a boy.
A 34-year-old woman from Dorchester was arrested on suspicion of causing racially or religiously aggravated criminal damage.
She was also arrested on suspicion of racially or religiously aggravated public order and theft.
She has been released on police bail while enquiries continue.
Police Constable Josh Hurwood, of Dorchester Police, said: “I would like to appeal to any witnesses who were in the library and have not already spoken to police to please come forward.
“Also, I am particularly keen to speak to the young boy who was reportedly approached by the woman as he may have important information to help our enquiries.”