More than 20,000 anti-government protesters gathered in the Yemeni capital, Sanaa, for a "day of rage" against President Ali Abdullah Saleh.
The demonstrators called for a change in government and rejected Mr Saleh's offer to step down in 2013 after more than 30 years in power.
Meanwhile, a similar number of his supporters rallied in a central square.
The gatherings are the largest in two weeks of protests inspired by the popular uprisings in Tunisia and Egypt.
In an emergency parliament session on Wednesday, Mr Saleh, 64, laid out his plans to move aside, saying he would not seek to extend his presidency when his current term expires in 2013 and pledging not pass on power to his son.
Despite his call to protesters to cancel their planned rallies, both pro- and anti-government demonstrators gathered in different parts of Sanaa.
"The people want regime change," anti-government protesters shouted as they gathered outside Sanaa University. "No to corruption, no to dictatorship."
The so-called "day of rage" was organised by civil society groups and opposition leaders who complain of mounting poverty among a growing, young population and frustration with a lack of political freedoms.
Unemployment in Yemen runs at 40%, and there are rising food prices and acute levels of malnutrition.
The country has also been plagued by a range of security issues, including a separatist movement in the south and an uprising of Shia Houthi rebels in the north.
There are fears that Yemen is becoming a leading al-Qaeda haven, with the high numbers of unemployed youths seen as potential recruits for Islamist militant groups
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