Police swarmed the area from 7pm yesterday after reports of dangerous driving and traffic gridlock in the area.
Wild vision shows drivers performing burnouts, which forced a section of the famous strip to be shut down.
At one point, a passing tow truck was inundated by people attempting to climbing onto the vehicle.
The meet allegedly began in Port Melbourne where more than 600 hundred people had gathered before the crowd moved to Chapel Street.
Police said they were aware a large number of people were planning to engage in “intentional high-risk driving activity”.
“Officers issued infringement notices to several drivers who chose to engage in hooning activity,” a police spokesperson said.
“A number of defect notices were also issued in relation to modified vehicles.
“In an effort to disrupt hooning behaviour and assist with traffic congestion on Chapel Street, road closures were implemented for a short time.”
City of Stonnington Mayor Melina Sehr said she “condemned” the behaviour which took place on Chapel Street.
“This kind of illegal activity is dangerous, unacceptable and completely out of step with what our community expects for one of Melbourne’s most iconic destinations,” Sehr said.
“Council has invested $4.38 million through the Chapel Street Precinct Improvement Plan to help restore confidence, safety and amenity to this precinct.
“What happened last night flies in the face of those efforts – and the efforts of local traders, residents and emergency services who are working hard to support positive change.
“There is no place for this behaviour in Stonnington. It puts lives at risk, damages public infrastructure, and undermines the reputation of a precinct we are actively working to rebuild.”
Sehr said the council will review CCTV footage and plans to hand over any evidence to police.