In sweltering heat, the demonstrators marched past Madison Square Garden where Republicans will meet this week for the national convention.
The protest was led by filmmaker Michael Moore and activist Jesse Jackson.
Marchers trekked past the concrete barricades and heavy police watch in front of Madison Square Garden, yelling "go home" to Republican delegates assembling for the convention.
Chanting and holding anti-war banners, the protesters packed the streets for 20 blocks, shutting down large parts of the city.
Moore, whose documentary Fahrenheit 9/11 has become a centerpiece of the anti-Bush movement, told the crowd that the Republican was elected in 2000 without winning the overall vote.
"The majority of the country never voted for the Bush administration and it's time to have our country back in our hands," Moore said.
The march, sponsored by the group United for Peace and Justice, featured a mixed crowd, including several veterans chanting slogans militant style.
"Iraq is Arabic for Vietnam," read one t-shirt, while another proclaimed: "Stop Bitching, Start a Revolution."
"This is like deja vu for me," said James Adams, dean of students at St Francis College in Brooklyn.
"It's the same kind of nonsense that we endured in Vietnam," Mr Adams said. "Based on lies, no enemy we can point to, and we're fighting an insurgency we cannot defeat."
[The Coalition of the KILLING is fighting resistance they cannot defeat.]
More than 300 people have been arrested in earlier protests and there are more expected during the week-long convention.
By Lisa Millar and Edited by Gregory Kable in New York 30 August 04
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