Israeli police used stun grenades to halt stone-throwing protesters Monday at the site Palestinians call the Al Aqsa mosque compound.
The clash came as Palestinians and Israeli peace activists turned to the courts in an attempt to stop Israel's planned demolition of 88 homes in a predominantly Arab section of East Jerusalem to turn the area into a park honoring the biblical King David.
Arabs call the section Al Bustan. Israelis call the area Silwan.
At least one hearing challenging the largest demolition since 1967 was set for September, the Los Angeles Times said.
Palestinians insist Israeli Prime Minister Ariel Sharon is using this summer's planned withdrawal from the Gaza Strip, which has U.S. backing, as a cover to drive Arabs from Jerusalem.
A Jerusalem official said Israel will protect the "cradle from which the City of David sprang."