A Melbourne court has granted bail to a woman facing serious terror-related charges, including being a member of a terrorist organisation and entering a declared area. Rayann El Houli, who has spent approximately two months in custody, was released on stringent conditions following a magistrate's ruling.

Ms El Houli, 34, who allegedly lived under Islamic State rule in Syria for about a decade, is preparing to fight the charges, which carry a maximum penalty of 10 years imprisonment. She returned to Australia in September 2025 and was subsequently charged in May of this year.

During the bail hearing, prosecutors alleged that Ms El Houli showed her young children propaganda videos promoting terrorism approximately ten years ago and contended there was no evidence she had renounced extremist views. They expressed concerns about the risks she might pose to the community if released.

However, defence lawyers presented a different picture, arguing that Ms El Houli does not support violent jihad. They tendered several psychological reports to the court, highlighting her efforts to move on with her life and prioritize the care of her four children, while also dealing with significant mental and physical health issues. Defence barrister Peter Morrissey stressed her commitment to rebuilding her life.

Magistrate Brett Sonnet, presiding over the case, acknowledged the allegations were "unquestionably serious" but ultimately agreed to grant bail. He stated that the defence had met an exceptional threshold test, and that stringent bail conditions could be put in place to adequately mitigate any potential risks of re-offending while out of custody.

Key factors influencing the magistrate's decision included the dated nature of the alleged offending and the possibility of "marital coercion" during her time in Syria. Furthermore, police confirmed that Ms El Houli had been under strict monitoring since her return to Australia in September 2025 and had committed no offences prior to her arrest eight months later. The prospect of lengthy legal delays before a potential trial also played a role in the decision.

The conditions for her bail are comprehensive, requiring Ms El Houli to reside at a specified address, adhere to a strict curfew, surrender her passport, and maintain a distance of at least 100 metres from any place of worship. Her brother has also committed to providing a $50,000 surety. Magistrate Sonnet issued a stern warning that any failure to comply with these conditions would result in immediate re-arrest and imprisonment, with no leniency.

Ms El Houli, who appeared in court via video link from the Dame Phyllis Frost women's prison, was expected to be released on Monday night once her bail was formally processed.