SINN FEÍN MLA Gerry Kelly has condemned the burning of poppy wreaths on a bonfire in Co. Derry.
The incident reportedly took place in the Galliagh area of Derry on Tuesday.
THE PSNI said it received a report in relation to the matter and was also aware of similar incidents, which it said will be treated as 'hate crimes'.
Speaking this week, Mr Kelly said such 'displays of hate' have no place in society.
"Images from bonfires in Derry on Tuesday are disgraceful and wrong," said the party's policing spokesperson.
"The burning of all flags, wreaths and posters is deeply offensive, it is a disrespectful, and it must end.
"There is no place for these displays of hate no matter where they are in our society.
"All of this is in stark contrast to the many excellent community festivals that are taking place across the city; celebrating art, culture, the future and everything that is good about the city and its people."
Bonfires were previously a common sight in nationalist areas of Northern Ireland in August to mark the introduction of the British Government's controversial internment operation.
However, the practice has largely been phased out, with the focus instead on celebrations of culture such as Féile Derry and Belfast's Féile an Phobail.
In a statement, the PSNI confirmed it was investigating a number of incidents relating to bonfires.
"Police received a report today, Wednesday, in relation to material placed on a bonfire in Galliagh last night," it said.
"This is being treated as a sectarian hate incident, and enquiries are being made.
"Police are also aware of the provocative display of material, including signs and poppy wreaths, on bonfires in Galliagh and Creggan in Derry/Londonderry last night, August 15, which will be treated as hate crimes and investigated."
