The group, March and March, was joined by political parties including ActionSA and the anti-migrant group Operation Dudula.
Protest leader Jacinta Ngobese-Zuma questioned why undocumented migrants are allowed access to public services such as healthcare, calling for tighter restrictions.
ActionSA leader Herman Mashaba accused the government of failing to control immigration, saying the country is being overwhelmed by foreign nationals.
Some protesters also claimed undocumented migrants are taking jobs and contributing to rising crime.
However, the demonstration has drawn criticism, with many observers warning that the rhetoric risks fueling xenophobia and social tensions.
The protest highlights growing divisions in South Africa over immigration policy and economic pressures.
