A man charged with murder in Arnhem Land has been granted bail to live with family on the Tiwi Islands, more than 500 kilometres away.

Last month, Justin Bukulatjpi, 20, was arrested by NT Police and charged with murder following the death of a 26-year-old man in Milingimbi/Yurruwi on April 14.

Police alleged at the time they had received "multiple reports of large-scale fighting occurring in the community", including allegations that some community members were fighting with edged weapons.

This week, he appeared in the NT Supreme Court over the murder charge, as well as one count of unlawfully causing serious harm to another person.

The ABC reported Mr Bukulatjpi's lawyer told Justice Judith Kelly many of his extended family had relocated to Bathurst Island to avoid the conflict in the community, with the move having been planned before the alleged offending.

Defence barrister Louise Dart said her client was not a threat to the community, given the distance between the Tiwi Islands and Milingimbi/Yurruwi, as well as his lack of prior offending.

Crown prosecutors did not oppose bail, but noted their case was strong, including phone footage allegedly showing the accused wielding a weapon.

Justice Kelly accepted there was evidence depicting the alleged offending, but said she had confidence Mr Bukulatjpi would comply with his bail conditions, the ABC reported.

"I accept that the conditions on remand in prison are bad and he may be obliged to spend a fairly long period of time on remand if he is not granted bail," she said.

Mr Bukulatjpi will be released from custody on Friday and flown to Bathurst Island in the Timor Sea where he will face strict bail conditions, including wearing an electronic monitoring device and reporting to police.

The case will return to court in July.