Videos posted on social media on Thursday showed dozens of people with Palestinian flags marching outside the Bahraini diplomatic mission while some of them tried to climb to the roof of an outbuilding.
Some reports also stated that the protesters had pulled down Bahrain's flag at the embassy, Presstv Reported.
"We took down the Bahraini flag to send a clear message to all those who participated in the Bahrain conference that we strongly reject normalizing relations with the Zionist occupiers and will never abandon our support of Palestinians," said a protester. "We are ready to fight for this."
An Iraqi official speaking on condition of anonymity told the media that the protesters stayed in the garden of the embassy complex and did not enter the offices inside the compound.
According to the official, Iraqi security forces tried to disperse the protest by opening fire in the air until reinforcements arrived to secure the Bahrain embassy, which is located in Baghdad’s western neighborhood of Mansour.
Bahrain recalls ambassador from Iraq
Following the protests, Bahrain recalled its ambassador to Iraq for consultations.
"The Ministry of Foreign Affairs of the Kingdom of Bahrain condemns the attack on the Embassy of the Kingdom of Bahrain to the Republic of Iraq by the demonstrators (which) led to sabotage in the embassy building," the Bahraini foreign ministry said in a statement on its website.
The protests indicate the growing outrage in the Muslim world against Bahrain's decision to host the Manama Workshop, an event that seeks to bring "peace" back to Palestine and Israeli-occupied territories through a deal masterminded by the Trump administration, in particular Jared Kushner, the US President's son-in-law.
The so-called "Peace to Prosperity" workshop opened in the Bahraini capital Manama on June 25 and ran through June 26 and sought to garner support for a $50 billion investment plan in Palestine.
The US plan has been met with disdain from Palestinians and the international community because early leaks suggest that it would ultimately seek to take away Palestinian people's right to statehood.
The Palestinian leadership boycotted the meeting, leading critics to question the credibility of the event.
Earlier on Thursday, Bahrain had called for “peace” and “better” relations with Israel.
Bahraini Foreign Minister Khalid bin Ahmed Al Khalifah said while his country -- alongside Egypt -- were the only two Arab countries to officially recognize Israel, “we know our brothers in the region do believe in it” as well.
Besides Bahrain and Egypt, Israel is believed to have secretly developed close ties with Saudi Arabia and the United Arab Emirates.