It was only the fifth public appearance by the head of the Shiite militant group, who has topped Israel's wanted list since even before their deadly conflict in 2006, an AFP correspondent reported.
Nasrallah appeared on stage from behind a curtain to wild applause from the thousands in the crowd at the indoor venue in a southern suburb of the Lebanese capital.
Jerusalem Day, celebrated every year on the last Friday in the Muslim fasting month of Ramadan, was this year dedicated to "solidarity with the people and the resistance in Gaza".
Hezbollah is currently fighting rebels in Syria alongside forces loyal to President Bashir al-Assad.