The twenty-second protest march, referred to as a "stroll," is scheduled to begin in the city center at 3 p.m. local time (13:00 GMT).
Up to 3,000 are hoped to turn up for the weekly rally, down from the 5,500 people estimated two weeks before. Organizers hope to boost their ranks with protesters from nearby Leipzig, which has an off-shoot anti-Islamization organization called Legida.
The movement's numbers in Dresden, its home city, have been on a slide for weeks after a record 25,000 attendance in January, for a demonstration held just weeks after Islamist gunmen killed 12 people in an attack at the Paris-based Charlie Hebdo magazine.
Pegida demonstrations began in October 2014 and went largely unreported until the group gathered notoriety with its harsh anti-migration rhetoric. The group's fearful polemic struck a chord with some Germans, unhappy about a rising influx of refugees and what they regard as the growing impact of Islam on Europe's cultural identity.
The movement saw rallies in neighboring European countries and Canada. In Australia, a like-minded group, Reclaim Australia, gathered thousands of anti-refugee protesters in 16 cities over the weekend.
In Europe, Pegida's rise has fueled anti-Islamic sentiment in countries that have recently seen Islamist-related violence, prompting increased security at mosques and Muslim cultural centers.