A Palestinian has been killed by Israeli soldiers in clashes in the West Bank town of Ramallah.
Thousands of Palestinians hurled stones at the soldiers who also injured seven others, including a teenage girl.
The victim is said to have been 21.
Demonstrators burned Israeli and US flags, as well as effigies of Israeli Prime Minister Ariel Sharon, in their weekly day of rage.
In Israel's Arab communities, thousands took to the streets peacefully to mark Land Day, a symbol of Israel's 1.2 million-strong Arab community's struggle for equality.
In the Gaza Strip, 30 gunmen from Palestinian leader Yasser Arafat's Fatah group led a large march, firing in the air and chanting.
In the West Bank town of Nablus, 10,000 demonstrators took to the streets. Several thousand then broke away, marching towards an Israeli checkpoint where they threw stones, drawing rubber bullets and tear gas.
In the Israeli Arab town of Sakhnin, thousands of Arabs and some Jews joined Land Day commemorations.
At the most sensitive spot of the Israeli-Palestinian conflict, the Al Aqsa Mosque compound in Jerusalem, more than 100 Palestinians threw stones at Israeli police who responded with tear gas and rubber bullets.
Police briefly evacuated Jewish worshippers from the nearby Western Wall, Judaism's holiest shrine, after stones were thrown there from the mosque area.