About 500 people have marched in an anti-Islamic State protest through the city streets of Melbourne, demanding world leaders stand up to the terrorist group.


Demonstrators, walking behind makeshift cardboard coffins of an adult and child, also demanded the government and the United Nations help those being targeted by the terror group.


"No justice, no peace, ISIS out of the Middle East," they chanted as they marched from Federation Square to parliament on Saturday.


The protest, organised by the Christian Youth of Melbourne, drew members of the Assyrian and Coptic communities and Jews and Muslims.