The incident occurred early in what was intended to be a 3-hour and 30-minute Virgin Australia flight on Monday night from Perth on the west coast to Melbourne on the east coast.
Flight VA696 returned to Perth Airport due to a "disruptive passenger," according to an airline statement.
Australian Federal Police officers awaited the plane’s arrival and "the disruptive guest was offloaded," Virgin reported.
Police stated that "officers arrested a man after he allegedly ran naked through the aircraft mid-flight and knocked a crew member to the floor."
"The man was transferred to hospital for assessment, where he remains," a police statement said.
It was unclear how or where on the plane the passenger disrobed.
Police anticipate summoning the man to appear in a Perth court on June 14. The exact charges have yet to be determined.
The airline apologized to "guests impacted," emphasizing that the safety of passengers and crew is its top priority.
Both the airline and police declined further comment beyond their statements.
Australian Broadcasting Corp. reported that no one was injured during the incident.