The rally in Umm al-Fahm was directed at the movie "Innocence of Muslims," Ynetnews reported.
The movie, apparently made by Coptic Christians who emigrated from Egypt to the United States, attracted little attention and had almost no public exposure until it became the focus of demonstrations.
Protests aimed at the movie and at a French magazine that published cartoons of the Prophet Muhammad have claimed the lives of about 30 people, including the U.S. ambassador to Libya.
Speakers at Saturday's rally said they were defending Muhammad.
"Any person that offends the Prophet must be punished," said Mohammed Zeitan, chairman of the High Arab Monitoring Committee. "Such people are scum and they are worthless. This is happening because the world feels that Islam is expanding. We will be victorious."