Video posted over the weekend showed dozens of captives, among them soldiers and civilians, in cages being transported to different parts of the Eastern Ghouta region outside Damascus.
The Syrian Observatory for Human Rights said the powerful Jaish al-Islam group had placed the caged captives in public squares to deter government bombing.
Human Rights Watch said the practice "constitutes hostage-taking and an outrage against their personal dignity, which are both war crimes."
"Ending Syria's downward spiral requires international backers of armed groups as well as the government to make protecting civilians a top priority."
The rights group noted that a similar practice was reported in September, in two government-held Shiite towns under rebel siege in Idlib province.
There images emerged purporting to show captured rebels placed in a cage on a building in one of the villages to deter opposition shelling.
Eastern Ghouta is a rebel stronghold outside Damascus and a frequent target of heavy and bloody government air strikes and shelling.
Rebels in the region regularly bombard the capital, and rights groups have condemned both sides for their indiscriminate fire.
More than 250,000 people have been killed in Syria since the conflict began in March 2011 with anti-government protests.
All sides in the complex civil war have been accused of abuses of varying degrees, including the use of banned weapons, torture, arbitrary arrest and execution.
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