The police said two men attacked him while shouting "ISIS!"
Police said the man's niece was unharmed physically, but the youngster was left deeply traumatised.
The incident is being investigated by the NYPD Hate Crimes Task Force.
The attack comes amid increasing anxiety in the United States over the threat posed by Islamic State, also known as ISIS, which has claimed responsibility for militant attacks around the world.
Investigators say two teens approached the man - who was wearing traditional Muslim garb, yelled "ISIS, ISIS " and then punched the man and kicked him when he fell.
The incident occurred Friday evening around 5:30 p.m.in the Parkchester neighborhood when 43-year-old Mujibur Rahman was picking up his 9-year-old niece from school, reports PIX 11. The suspects took off without taking a single thing from Rahman.
"She could not sleep", the victim told NY1. The father of three told ABC's Eyewitness News that he believes he was attacked simply due to his faith. "She said she didn't want to go back to school anymore".
In its analysis of data released by the Federal Bureau of Investigation (FBI), the group found that in recent years, there has been an average of 12.6 suspected hate crimes against American Muslims per month. "We wish the victim of this attack a speedy recovery, and our thoughts are with him and his family during this hard time", said Bronx Borough President Ruben Diaz Jr.