It was among a series of protests around the country as part of a "National Day of Action for Palestine" organised by the Palestine Solidarity Network Aotearoa.
About 20 in total were scheduled for Saturday.
It comes after the government’s announcement last week it was considering whether to join other countries, including France, the United Kingdom, Canada and Australia, in recognising Palestinian statehood at a United Nations summit next month.
Dunedin protest organiser Rinad Tamimi said she believed Saturday’s protest was one of their largest in the city to date. She estimated between 350 and 400 people attended.
"It was just amazing. It was so heartwarming to see so many people being together and caring."
The continued love and solidarity shown by the Dunedin community had given local Palestinians hope and the strength to keep going, Ms Tamimi said.
