Georgia has promised to revoke a new pro-Russia law on "foreign agents" after two nights of mass rallies, during which police fire tear gas at thousands of demonstrators.
Protestors banded together to protect a woman waving a European Union flag as police targeted her with a water cannon in Tbilisi.
Concern has been growing that the former Soviet nation, which aspires to join the EU and Nato, is taking an authoritarian turn and maintaining links with Moscow.
The legislation, which had been prepared by ruling party Georgian Dream, is seen as reminiscent of Russian legislation used to silence critics.
Georgian Dream said in a statement the bill had been "represented in a bad light and in a misleading way", adding that it would launch public consultations to "better explain" the law's purpose after announcing its withdrawal.
Experts say only a tiny portion of Georgia’s population is pro-Russian.
Plans to join Nato and the EU are enshrined in Georgia's constitution and are supported by at least 80 per cent of the population, according to opinion polls.
Georgian opposition parties vowed on Thursday to continue protesting despite the ruling party's promise to revoke the legislation.
"For as long as there are no guarantees that Georgia is firmly on a pro-western course, these processes will not stop," a group of opposition parties said in a joint statement, announcing another rally on Thursday evening and demanding the release of dozens of detained protesters.
A European Union delegation in Georgia immediately cheered the halt, saying they "encourage all political leaders in Georgia to resume pro-EU reforms".
Protests in Georgia - in pictures
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One protestor holds the Georgian flag in front of a burning barricade. AP -
Protesters holding a European Union flag are sprayed by a water cannon near the Georgian parliament in Tbilisi. AFP -
Georgian police detain a woman as she takes part in the protests. EPA -
Police use a water cannon to disperse demonstrators in Tbilisi. Reuters -
Police cars have been set on fire during the demonstrations. AP -
Violence has regularly broken out. Reuters -
Several cars have been overturned. Reuters -
Riot police have been drafted in. AFP -
Many protestors have brought national flags. Reuters
Huge crowds had gathered in front of the parliament building in central Tbilisi on Wednesday, holding EU and Georgian flags, and chanting "no to the Russian law".
The protesters demanded authorities drop the bill on "transparency of foreign funding", which critics said mirrors a law used in Russia to shut down media and dissenting groups.
Elene Ksovreli, 16, said Georgians did not want to see their future threatened.
"We will not allow them to make Russia define our future," she told AFP. "We, young people, are here to protect our everything."
Another demonstrator, 72-year-old Aza Akhvlediani, called the country's government "stupid".
"I know what's happening in Moscow. They stop every passerby and do whatever they please to them. I think the Georgian government wants the same," she said.
In response to the developing situation, Washington urged the government to show restraint and allow peaceful protests, while Ukrainian President Volodymyr Zelenskyy called for "democratic success" in "friendly Georgia".
Protesters were also out on Tuesday after ruling party members approved the draft law on "foreign agents" in its first reading.
Clashes ensued with police using tear gas and water cannon against the demonstrators.
Police said more than 70 demonstrators had been detained and 50 police officers injured during the protests on Tuesday.
Tom de Waal, a senior fellow at Carnegie Europe, said that both the bill and crackdown were a serious challenge in the politically turbulent country.
"It's a big moment for Georgia, still a democracy, but definitely a struggling one," he said on Twitter.
In Russia, the Kremlin has extensively used the "foreign agent" label against opponents, journalists and human rights activists accused of leading foreign-funded political activities.
Georgian authorities have faced mounting international criticism over a perceived backsliding on democracy, seriously damaging Tbilisi's ties with Brussels.
Georgian Prime Minister Irakli Garibashvili has defended his balanced policy as being aimed at ensuring "peace and stability".
But President Salome Zourabichvili, who vowed to veto the law it if crosses her desk, said earlier this week she was on the side of the protesters.
"You represent a free Georgia, a Georgia which sees its future in the West, and won't let anyone take this future away," she said in an address recorded in the United States, where she was on an official visit at the time.
"Today is a dark day for Georgia's democracy," the US embassy in Georgia said after the initial reading of the bill.
Russia and Georgia fought a five-day war in 2008.
Georgia applied for EU membership together with Ukraine and Moldova, days after Russia invaded Ukraine in February last year.
EU leaders granted formal candidate status to Kyiv and Chisinau in June, but said Tbilisi must implement several reforms first.
Georgia's treatment of jailed former president Mikheil Saakashvili, whose health has drastically deteriorated in prison, has also drawn international condemnation.
Late last month, European Union member states issued a formal diplomatic warning to Georgia's leaders over Mr Saakashvili's health.
