The organization is seeking $150 million in the suit.
The Satanic Temple - a Salem, Mass., activist group called TST for short - claims series producer Warner Bros. not only knocked off its version of the goat deity, which it calls Baphomet, but also wrongfully made it "the personalization of evil".
The statue, which the temple says cost about $100,000 to design and build, features a goat's head on a human body having both male and female traits as well as horns and a torch.
In 2015, the Satanic Temple pushed to install a bronze statue of Baphomet - hooves, horns and all - to counter a Ten Commandments display at the Oklahoma Capitol (the state Supreme Court later outlawed the Ten Commandments display from appearing there).
Speaking to CNBC, Lucien Greaves, co-founder of the Satanic Temple, said the statue's appearance on the show, which he described on Twitter as "asinine Satanic Panic fiction", will damage what the TST represents and the work it has done.
Characters in the show who worship the "Dark Lord" or Satan practice cannibalism and forced worship, and the Satanic Temple argues its members are being associated with these "evil antagonists", the BBC report said.
"The Chilling Adventures of Sabrina" is a supernatural show produced by Netflix. "A lot of people who haven't heard of us first stand to just recognize that monument as the "Sabrina" monument, which dilutes and denigrates the entire project", Greaves said.
Neither Netflix or Warner Bros have commented on the lawsuit.