Police said that they received reports of an assault in St Patrick Street at around 6.40pm on Friday, April 30.
The victim was taken to hospital following the incident.
A source told the Edinburgh Evening News it was an “unprovoked racist attack” on an East Asian woman in broad daylight.
Police have said enquiries are ongoing and that “officers will keep an open mind about any motives behind the incident”.
The source, who wished to remain anonymous, said the woman was unable to defend herself after being approached and attacked by a group.
They said: “A female member initially attacked the victim, grabbing her by the hair and forcing her to the ground.
"The group then continued to attack the victim who was defenceless. Police attended the scene and took statements.
"Multiple witnesses were present at the time of the attack.
“Police were given a very clear photograph of the initial female attacker.”
The assault comes after the ‘despicable’ racist attack of a 22-year-old student outside the University of Edinburgh library in December last year – not far from Friday’s alleged incident.
A Police Scotland spokesperson said: "We were made aware of a woman assaulted on St Patrick Street in Edinburgh around 6.40pm on Friday, 30 April.
"The 26-year-old woman was taken to hospital for treatment following the incident.
"Enquiries are ongoing and officers will keep an open mind about any motives behind the incident.”
Anyone with information is urged to call police on 101, quoting incident 2991 of 30 April.