Khurram Syed Sher, a 28-year-old Pakistani-origin doctor who took part in the Canadian Idol contest in 2008, was arrested along with two other suspects under 'Project Samosa' by the Canadian police.
Sher, who was born in Montreal, walked free Wednesday after his relatives posted bonds worth $183,000. The second suspect named Misbahuddin Ahmed - who initially claimed to be of Indian origin - was granted bail Sept 28.
The third named Hiva Alizadeh is yet to have his bail hearing.
It is the second Al-Qaeda-linked terror plot to be unearthed in Canada after the Toronto-18 plot of 2006 in which 18 Toronto-area Muslims were arrested for plotting to blow up Canadian targets, storm parliament, take leaders hostage and behead the prime minister.
Under Canada's lenient anti-terror laws, only 11 of these plotters were given very light sentences.
Dr Sher's lawyer, Anser Farooq, told the media after getting his client bailed out Wednesday, "We are not hoping this matter proceeds to trial. We're hoping that the charges against my client are eventually stayed. The sooner that happens, the better.
"I would certainly hope that they are going to review this case thoroughly before subjecting an individual through this lengthy and very troublesome prosecution."
Because of its soft anti-terror laws, Canada has come in criticism in the US where, in fact, some people still believe that the 9/11 plotters came into the country from Canada.
Before 9/11, the famous Millennium Bomber Ahmed Ressam, who was on his way to blow up Los Angeles in December 1999, had entered the US from Vancouver.
Though Canada has tightened anti-terror laws after 9/11, the Americans still find the response of its northern neighbour inadequate.
Canada is home to more than a million Muslims in its population of about 34 million. According to projections, its Muslim population will triple in the next decades.