The US military in Iraq says it has released about 500 detainees in what was described as an effort to foster goodwill and reconciliation.
Sunni Arab leaders complain a large proportion of about 20,000 people held in Iraq - often without charge for long periods - are from their community.
They were freed at a ceremony at Camp Victory near Baghdad, say reports.
Separately, Iraqi police said they had found another mass grave in the Lake Tharthar area with seven bodies inside.
The unidentified decomposing remains were bound and blindfolded. Twenty-two bodies were discovered in another grave in the same area several days ago.
They were found during operations targeting al-Qaeda militants, the police said.
Meanwhile, the US military reported the death of another of its soldiers.
It said he died as a result of injuries sustained in a roadside bomb blast south of Baghdad on Wednesday.
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