British National Party leader Nick Griffin told a crowd that Islam was a "wicked, vicious faith" a court heard.
The pair were greeted by supporters outside court earlier this week
Mr Griffin, 47, from mid-Wales, is charged with using words or behaviour intended to stir up racial hatred in Keighley, West Yorkshire, in 2004.
BNP activist Mark Collett, 25, of Leicestershire, also faces four similar charges at Leeds Crown Court.
The charges arose out of speeches filmed by BBC journalist Jason Gwynne for a documentary on the party.
The jury heard Mr Griffin, of Llanerfyl, Powys, urged the gathering to vote BNP to ensure "the British people really realise the evil of what these people have done to our country".
Reading excerpts from the speeches, prosecutor Rodney Jameson QC opened the case against the men by telling the court Mr Griffin said white society had turned into a multiracial "hell".
The jury was shown the speeches in which, when referring to Islam, Mr Griffin said: "This wicked, vicious faith has expanded from a handful of cranky lunatics about 1,300 years ago.
"And if you read that book (the Koran), you'll find that that's what they want."
The court heard Mr Collet, of Swithland Lane, Rothley, addressed the gathering at the Reservoir Tavern in Keighley on the same evening.
In his speech Mr Collett accused Asian people of being racist, hating white people, and being responsible for rapes and muggings on white girls and pensioners.
"Let's show these ethnics the door in 2004." he said.
In a second speech at the Crossroads public house in Keighley, Mr Collett said gangs of Asian youths wanted "to wipe out white people" and referred to asylum seekers as "cockroaches".
Mr Jameson said that instead of contributing to a debate on multiculturalism, Collett's speeches were "little more than crude racist rants".
Both men deny the charges against them.
The trial was adjourned until Monday.