About 150 members of the Reclaim Australia group gathered in Sydney's Martin Place, some wearing ancient Greek army costumes and others with Australian flags draped across their shoulders.
Two blocks away, a loud counter-protest group waved banners saying "Stand With Multiculturalism Against Racism" and "No Racism, no Islamophobia".
George Jameson, rallying with Reclaim Australia in a replica Spartan military outfit, said they weren't racists and had come together to stand up for freedom of speech.
"I'm [here] for freedom of speech and democracy and respecting individualism, respecting someone's dignity and their human rights."
But at the other end of the street, protester Linc Saunders said some had different intentions.
Similar protests in Melbourne on Saturday were much more heated, with at least four people arrested and dozens hit with pepper spray by police who battled to keep the two sides apart.
Police separated anti-Islam and anti-racist protesters at a Reclaim Australia rally in Brisbane.
Other rallies were planned for Canberra, Hobart and Perth.
About 100 anti-Islam Reclaim Australia protesters were met by about the same number of people from the Rally Against Racism group in Perth's Solidarity Park. The anti-racism group was louder, using megaphones to chant "Muslims are welcome, racism's not" and shout obscenities.

