She said the man pulled off the hood to her jacket and cut off her hijab with a pair of scissors before fleeing the area. She also said the man had returned a short time later and had continued to cut her hijab from behind before smiling and running away.
Prime Minister Justin Trudeau and Ontario Premier Kathleen Wynne were among the notable names who commented on the incident.
There was a dip in police-reported hate crimes targeting Muslims in 2016, with 139 reported, according to the latest data from Statistics Canada. "This investigation has concluded with no criminal charges being pursued".
"We had, as everyone knows, allegations of an extremely serious crime on Friday which we investigated - we had a team of investigators who put together a significant amount of evidence and they came to the conclusion that the events that were alleged did not happen", said Mark Pugash, Toronto Police spokesman.
Police said they are no longer seeking a suspect.
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"These allegations were extremely serious and not surprisingly, they received national and worldwide attention", police spokesperson Mark Pugash said in an interview.
The student won't be punished for setting off an incident that roiled her country.
Noman had told reporters Friday she was "confused, scared" and "terrified". Trudeau added, "I want her and her family and her friends and community to know that that is not what Canada is".
But Toronto police released a brief statement Monday saying that the events described by Noman did not occur.