The demonstrators, who rallied behind comments by the Iranian President Mahmoud Ahmadinejad speech calling for the destruction of Israel, chanted slogans denouncing the Jewish state and the United States.
They also set fire to Israeli and U.S. flags during the march which began shortly after the Tehran Friday Prayers sermon.
Effigies of U.S. President George W. Bush and Israeli Prime Minister Ariel Sharon were set on fire as protesters chanted Death to America and Death to Israel.
Huge banners and placards in both English and Persian read, Israel should be wiped off the map.
Since the 1979 Islamic revolution, Iranian authorities organise a rally against arch-nemesis Israel on the final Friday of the holy Islamic month of Ramadan.
Ahmadinejad and several top officials of the Iranian regime Fridays rally.
On Wednesday, the ultra-conservative President said “As the Imam [Ayatollah Ruhollah Khomeini”> said, Israel must be wiped off the map”.
Anybody who recognises Israel will burn in the fire of the Islamic nations fury, he added.