Known as Jerusalem Day, the anniversary marks the seizure in the 1967 Six-Day War and later annexation of mainly Arab east Jerusalem in a move never recognised by the international community.
Police said two officers were wounded by Palestinian stone-throwers and at least four Palestinians were arrested near the walled Old City's Damascus Gate.
The demonstrators were dispersed by baton-wielding police, some on horseback.
A police statement said that in one incident "several dozen Muslims scuffled with a group of Jews".
Police would not say how many jubilant Zionists descended on the Old City's Muslim Quarter on their way to pray at the Western Wall Jewish holy site, only that "large crowds" were expected.
"They are coming here with the support of an extremist government that paid for their buses," a Palestinian woman, Muna Barbar, told AFP outside Damascus Gate.
The Palestinians want the eastern sector of the city as the capital of their promised state, and vigorously oppose any attempt to extend Israeli control.
"Jerusalem has always been the capital of the Jewish people alone and not of any other people," Prime Minister Benjamin Netanyahu said at an official Jerusalem Day ceremony.
"A divided Jerusalem is a past memory: the future belongs to a complete Jerusalem which will not be divided again."
Jerusalem Day is marked by a series of state ceremonies and an annual march through western Jerusalem and into the east side, which is predominantly attended by nationalist hardliners.
Every year, police deploy in strength to secure the march, which frequently provokes clashes.
But last week, the court rejected the appeal, noting it did so "with a heavy heart".
In their ruling, the justices stressed there should be "zero tolerance" of anyone involved in violence, and that police should arrest anyone chanting "death to Arabs".
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Smart Quarterly
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
