Two Trafalgar teenagers were threatened and intimidated on a west bound train on Saturday night before getting off the train at Yarragon and reporting the incident.
The two youths, aged 16 and 17-years-old, boarded the train at Trafalgar to go to Warragul.
They were approached by a group of five males aged between 12 and 20-years-old. Police said some of the group sat opposite the Trafalgar teenagers, asking for a vape and then demanding the Nike hoodies they were wearing.
Police said the offenders indicated they were carrying knives and one of them flashed a metallic object at the two teenagers. They reportedly threatened to bash and stab the teenagers if they didn't hand over their hoodies.
The two teenagers removed their hoodies and got off the train at Yarragon and reported the incident to a conductor.
When the train arrived at Drouin just after 9pm, police got on the train. However, police said all doors opened and the offenders ran onto the railway tracks and left the scene.
The youngest of the alleged offenders was known to the victims. The conductor told police the offenders had boarded the train at Moe.
Police are continuing investigations.