The woman had finished her shift in a Queenstown bar just before midnight on Sunday and left to walk home alone after talking to a group of friends in the street.
A man approached the woman from the public phone boxes outside the Night 'n Day store on Camp Street and propositioned her as she walked past.
The woman tried to avoid the man and carried on walking, before going into Night 'n Day to buy something in the hope he would stop following her.
Several minutes after she left the store, he followed her along Hotops Rise with his hood up and grabbed at her as she walked past Queenstown Resort College.
When she verbally challenged him about him indecently touching her, the man ran back towards Camp Street.
Queenstown Police are seeking information from the public after the incident and will continue to look at CCTV footage in the area.
Sergeant Steven Watt, of Queenstown, said it is important to keep an eye on your friends when out late at night in the town.
``It is always the old saying that comes to mind.
``Look after your mates when you're out in the town and if you do feel unsafe then stay where you are and call the police.
``Please get in touch if you have any information that could help ourinvestigation.''
The man, pictured, is described as about 6ft tall, caucasian, and of slim build, with blonde hair.
He was wearing tan-coloured pants and a black hooded jacket.
If anyone witnessed this assault, or saw a man behaving suspiciously in the area of the Night 'n Day around midnight on Sunday, you are asked to call Detective Lisa Watt at Queenstown Police Station on 03 441 1600 or contact Crimestoppers.