The Sunday demonstration, in which 15,000 people participated, came amid concerns of rising racism and anti-immigration sentiments in Germany.
The anti-racism rally was aimed at promoting tolerance and open-mindedness in the country.
"We are all standing here to show that this city can display a peaceful side," said Cologne Mayor Juergen Roters.
The rally was a response to growing demonstrations by right-wing factions in Germany.
On October 26, dozens of policemen were injured in scuffles with protesters at a protest rally by right-wingers in Cologne, Press TV reported.
"That should never happen again on our streets," Roters noted, referring to the October march.
There are nearly 22,000 right-wing extremists in Germany, around a quarter of them neo-Nazis, said a report published by German newspaper Welt am Sonntag.