Chanting "shame, shame, Thales, shame" and "Papua Merdeka (Papua Freedom)", the group blockaded both the entrance and exit roads into the factory on Finn Street.

The protestors used the rally to call for a ceasefire in both the Indonesian province of West Papua and in the Gaza Strip.

The group also condemned the Israeli government for its military campaign in the Gaza Strip which its health ministry said has killed more than 15,000 Palestinians.

Israel invaded the enclave following a Hamas-led attack on its citizens on October 7 which resulted in the deaths of about 1200 people and the capture of 240 hostages.

Zelda Grimshaw of Wage Peace, one of the groups involved in the Bendigo demonstration, accused Thales of supplying arms to Israel as well as the Indonesian army for use against separatists in the province of West Papua.

"Basically we want Thales to stop making weapons. We are here to shut the Thales factory down," Ms Grimshaw said.

"They make weapons here and those weapons are exported to Indonesia who use them to kill West Papuans.

"We are here in solidarity with the people of West Papua.

"Thales also have partnerships with Israeli companies and Israeli aerospace industries.

"They make missiles, they make bombs that are currently being used in Gaza so we are calling for a ceasefire."

The blockade event was also co-ordinated by the Black People's Union and Unionists for Palestine.

Ms Grimshaw said the conflict in Gaza and the subsequent calls for peace seemed to have resonated with a lot of Australians given the "massive demonstrations" around the country in the last two months.

"It is a fantastic turnout," she said of the Bendigo blockade.

"The bombardment of Gaza has clearly touched a nerve for a lot of Australians. We have seen an incredible uprising in solidarity and action."

Ms Grimshaw said this blockade was a way for "ordinary people" to voice their desire for peace in the two disputed regions.

"We are ordinary people and this is how we can participate in the political discourse," she said.

"We don't know if this (protest and blockade) is going to be the solution.

"We feel compelled to do something to stop the genocide in Gaza and stop the supply of weapons to Israel.

"There are Palestinian action groups springing up everywhere. Get in touch with your local group and there will be ways that you can participate that feel meaningful and that feel powerful."

The group camped outside the factory for most of the day.

Thales has been contacted for comment.