The demonstrators, including families, ferried in to central Tehran by thousands of buses and private cars, chanted slogans against Israel, the US and its ally Britain.
Effigies of US President George W Bush and Israeli Prime Minister Ariel Sharon were set ablaze on major avenues around Tehran University.
"Death to Israel, Death to Britain, Death to America," chanted the protesters, some of them wearing the black-and-white keffiyeh chequered headscarf of the Palestinians.
"We want to make Israel understand that the Palestinians are not alone," said one student, giving her name as Zohreh.
Several top Iranian officials, including President Mohammad Khatami, parliament speaker Mehdi Karubi and judiciary chief Ayatollah Mahmud Hashemi Shahrudi, took part in the demonstration.
The protests were inaugurated by Ayatollah Ruhollah Khomeini, the late founder of the Islamic republic.
Jerusalem Day is supported by both the conservative and reformist movements in Iran. – Sapa.
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