More than 10,000 protesters massed in University Square, and later broke through police lines, before heading toward government headquarters. Thousands also protested in the cities of Cluj in western Romania and Iasi, a city in the north.
In Bucharest, protesters yelled: "We want democracy, with thieves in prison." They cheered after President Klaus Iohannis, a government critic who supports the anti-corruption drive, turned up at the protest.
Some protesters were elderly, while others carried children on their shoulders or held them in their arms. Demonstrators called the ruling Social Democratic Party "the red plague."
Critics say however it would help government allies convicted of corruption. They also say the proposal should be debated in Parliament.
Donald Simionoiu, an art director, said he believes that the proposal "hides other things," noting that it would benefit Liviu Dragnea, Social Democrat chairman, who has a two-year suspended prison sentence for voter rigging, and media mogul Dan Voiculescu, who is serving a 10-year sentence for money-laundering.
The justice ministry published a draft of the plan Wednesday, which was criticised by Romania's top prosecutor, magistrates and opposition politicians.
Prisoners over 60, pregnant women and inmates with young children would see their sentences halved regardless of their convictions.
Prison authorities say 3,700 prisoners could be freed. The government said around 2,500 would be freed.
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