Loyalist William 'Mo' Courtney has appeared in court charged with threatening to kill victims' campaigner Raymond McCord.
The 50-year-old accused is also alleged to have harassed the daughter of a murdered UDA leader in the same incident.
Belfast Magistrates Court heard claims that he directed an offensive remark and hand gesture at Tracey Coulter while she was in a car with Mr McCord on Monday.
Courtney, of Fernhill Heights in the city, was granted bail but banned from any contact with either alleged victim.
He is also prohibited from going near the home of Ms Coulter, whose father Jackie was killed during a loyalist feud in 2000.
Appearing in the dock dressed in a Barcelona FC tracksuit top, Courtney spoke only to confirm he understood the charges of making a threat to kill and pursuing a course of conduct amounting to harassment.
He was arrested following the alleged confrontation in the Peters Hill area of Belfast.
Mr McCord, an outspoken critic of loyalist terror groupings since the paramilitary murder of his son Raymond jnr, had been travelling in a car with Ms Coulter.
It was claimed that as their vehicle stopped at a junction Courtney walked past, gestured at Ms Coulter and called her a "w*****".
According to police, Mr McCord then got out and exchanged words with the accused. The alleged threat was then made.
Both charges are strenuously denied, a defence lawyer said.
Basing her decision solely on evidence directly linked to the case, District Judge Fiona Bagnall granted bail. Courtney, who must report to police three times a week, was released on £500 bail to appear again on January 7.