Hamas fighters in military fatigues paraded with rockets and heavy machineguns during Sunday's rally. The Islamist group said the large turnout reflects widespread support despite domestic and external challenges.
Gaza has been under an Israeli-Egyptian blockade since Hamas took power in 2007.
Hamas leader Ismail Haniyeh praised a recent series of deadly attacks against Israel in the West Bank, which is controlled by the Palestinian Authority. He said such attacks are "a response" to the anticipated American peace proposal that Palestinians believe will favor Israel.
Haniyeh also called on Palestinian President Mahmoud Abbas to meet in Gaza or Cairo to end a decade of inter-Palestinian division.
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