The demonstration was held in Tahrir Square in the center of the Iraqi capital. Protesters were said to have brought copies of the Quran, banners, portraits of Islamic religious leaders and Iraqi flags.
Earlier Thursday, the Iraqi government condemned Quran burning in Sweden and retaliated against the act by opting to expel its Swedish ambassador. The government also warned it would cut ties and halt the operating licenses for Swedish telecom giant Ericsson.
In neighboring Iran, the Swedish ambassador to Iran was summoned to the Foreign Ministry where he was warned of the possible consequences of continued attacks on the Muslim holy book.
"We strongly condemn the repetition of desecration of the Holy Quran and Islamic sanctities in Sweden and we believe that the Swedish government is fully responsible for the consequences of provoking the feelings of the world's Muslims," Foreign Ministry spokesman Nasser Kanaani said told the Nordic country's envoy.
The Tahrir Square protest comes hours after hundreds of Iraqi nationals stormed the Swedish embassy in Baghdad and set it on fire overnight into Thursday in protest over a planned burning in Stockholm.
Iraqi immigrant Salwan Momika, who took part in the earlier June burning incident, was expected to also burn the Quran and the Iraqi flag on Thursday; however, the 37-year-old ultimately stepped on his copy of the Quran instead.