Police have launched an investigation after a swastika and offensive language was sprayed onto a wall on Tewit Well Road.
An image of the offensive vandalism was posted on Twitter on Sunday sparking a backlash of anger from both the police and Harrogate Borough Council.
The leader of the council, Coun Richard Cooper, said he was "shocked" by the graffiti and that the council would work with the property owner to remove it.
He said: "Due to the offensive nature of this graffiti, we are trying to contact the owner to offer our assistance. As a temporary measure we have covered up the graffiti so that it is no longer visible.
“Graffiti is not the fault of the landowner – the person who owns this wall is a victim of vandalism. The person to blame is the person that put it there.
"I think, more even than punishment, that person needs education on the background to the symbol used. I would urge anybody who knows the person who did this to give their name to the police.”
Police said they were taking action to ensure the graffiti would be removed "as quickly as possible".
A police spokesperson said: "We are investigating recent incidents of offensive and unacceptable graffiti in the Tewit Well Road and Ainsty Road areas of Harrogate.
Anyone with information about those responsible is asked to contact the Harrogate Neighbourhood Policing Team by dialling 101 and selecting option 2.