The incident follows a wave of anger across the country against the taking down of a Turkish flag earlier in June from a military base in the Kurdish-majority southeast.
A policeman shot the 28-year-old man in the leg when he climbed a pole to pull down a Turkish flag at a a police station in Gaziosmanpasa, a working-class district on Istanbul's European side.
The man, identified as Ali Ocgun, shouted "Freedom for Kurds" and threatened to attack the police with a knife before he was shot and taken to a nearby hospital, Dogan news agency reported.
Turkish Prime Minister Recep Tayyip Erdogan reacted with fury to the removal of "our sacred flag", saying whoever takes it down "will pay a price".
The premier launched peace talks with the outlawed Kurdistan Workers' Party (PKK) in 2012, and the rebels declared a historic ceasefire in March last year, although the process stalled in September amid accusations the government had reneged on promises.
Erdogan's government on Thursday submitted a package of reforms to parliament to revive the peace talks -- an apparent bid to garner votes from Turkey's biggest minority group ahead of presidential polls in August.
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