The numbers attending were slightly less than expected at the rally, backed by London Mayor Ken Livingstone.
The event was held to put forward the views of moderate Muslims towards the cartoons.
Police were expecting a crowd of up to 10,000 to congregate at London's Trafalgar Square.
The Islamophobia rally was organised by a coalition of moderate Muslim groups in the UK.
Participants wanted to mark their protest at the publication of the controversial cartoons caricaturing the Prophet Muhammad.
The campaigners were due to be joined by public figures across the political spectrum.
The peaceful demonstration was intended to distance those participating from a minority of extremist Muslims.