Chad's army claims to have killed several hundred rebels in fierce fighting near the eastern border on Monday.
But both sides claimed victory in the battle, in which several government armoured vehicles were destroyed.
Prisoners from the Union of Forces for Democracy and Development (UFDD) were put on display by the army. The UFDD claims only 17 of its fighters died.
Chad has long claimed Sudan has been arming the rebels and after the battle, officials showed journalists cases of weapons with Sudanese markings they claimed to have seized.
An array of booty was shown, including some new AK-47 rifles and uniforms which were still in their packaging, evidently unused.
A Chadian armoured vehicle damaged in the battle in Abou Goulem, 90km east of Abeche, was inspected by government soldiers to see if it was still serviceable.
Nearby villagers were pressed into action to dig graves for Chadian soldiers, who had died in the fighting.
Disconsolate rebel prisoners awaited their fate as the government said it had chased their leader into Sudan.
The graffiti on the jeep of one of the seized rebel vehicles read: "Long live the UFDD - conquer or die."
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