Protesters had gathered overnight in the Dikmen district of the capital and attempted to erect barricades to block traffic on a main artery.
Local television pictures showed demonstrators chanting against the release of a police officer who stands accused of fatally wounding a 26-year-old protester during the country's recent unrest.
Protests initially sparked by a brutal police action against a local conservation battle to save Istanbul's Gezi Park snowballed into nationwide demonstrations against the Islamic-rooted government, leaving four dead and nearly 8,000 injured.
On Monday, Erdogan praised the police for their "heroism" in dealing with the protesters.