In footage widely shared online, he is seen marching on the spot while raising his arm.
The 33-year-old frontman is now facing major backlash from fans online after the stunt.
However, those close to Matty say he was performing a salute with his left arm and not his right as the Nazis did.
tw // antisemitism
why is no one talking about the fact matty healy did a h!tler salute on stage?? pic.twitter.com/QXdza5gzuX
— nat (@natluvsfilm) January 26, 2023
Defenders added that he does not hold Nazi beliefs and that this was his way was mocking the disgraced rapper Kanye West following his anti-Semitic statements.
The salute was performed as he sang the lyrics: "Thank you, Kanye, very cool,” in their song Love It If We Made It.
The video that was posted to Twitter has garnered almost five million views and has led many fans to call on Matty to clear the whole situation up.
Fans react after The 1975's Matty Healy does 'Nazi salute' on stage
Dozens of fans took to social media to express their confusion and anger at the singer's stunt which was supposedly done to mock Kanye West.
One user took to social media to say: "Nooooo not Matty."
While another added: "There is no way that video of matty healy is "out of context" btw.
"Even with all the facts (which i have, bc i have been a fan of this band for years) the impact of some edgelord standing on a stage doing a nazi salute is greater than any of you can comprehend unless youre jewish."
However, some fans defended the move, citing his lyrics that were critical of Kanye West, an artist that has expressed very anti-Semitic views over the last few months.
But others attacked those defending him, saying: "Not people defending matty healy doing a literal nazi salute at his show beyond disappointed."
While another added: "I don’t really understand the Matty Healy support after he does a Nazi salute on stage."