Thai society remains deeply divided following political violence that left about 90 people dead -- mostly civilians -- in a series of bloody street clashes between armed troops and protesters in April and May last year.
Police estimated that about 25,000 people had joined Saturday's gathering by early evening with the numbers expected to increase later for a video-link address by the Reds' hero, ex-premier Thaksin Shinawatra.
"In the past year we have suffered excruciating pain and been suppressed by the elite," said Nattawut Saikuar, one of seven main leaders of the movement recently released on bail after nine months in prison.
"I invite our brothers and sisters to come out tonight," he told a satellite television station run by the Reds.
The rally near Bangkok's Democracy Monument was expected to be the largest since May 2010, when troops firing live rounds and backed by armoured vehicles moved in to end the Reds' two-month demonstration.
After the crackdown, dozens of buildings were set ablaze across Bangkok, including a major shopping complex and the stock exchange.
"Many people I knew died last year so I want to call for justice. I hope this government goes," said Prapai Wichianchod, a 72-year-old retiree from northern Kampaengpetch Province.
Demonstrators at Saturday's rally wore T-shirts saying "Reds never die" and waved placards with slogans including "No Justice, no unity".
Many seek the return of Thaksin, who was ousted in a 2006 military coup and lives overseas to avoid a jail sentence imposed in absentia for corruption.
"I want to express my desire to fight. I voted in an election but the military seized power and stole my rights," said Supoj Ardsak, a 25-year-old company worker from Bangkok. "Now I want to call for my rights back."
National police spokesman Major General Prawut Thavornsiri said almost 3,500 officers were deployed for the demonstration and more were on standby, although the authorities said the rally could go ahead if it was peaceful.
"Police predict there will be more than 40,000 protesters and the rally will continue into the early hours, but we don't expect any violence," Prawut said.
The Red Shirts have held a series of peaceful one-day rallies in the capital in recent weeks.
The movement views Prime Minister Abhisit Vejjajiva's government as an unelected elite because it came to power in a 2008 parliamentary vote with military backing, after a court ruling threw out the previous administration.
The government rejects the accusation, saying it came to power through a democratic process.
Abhisit said on Friday he would dissolve the lower house of parliament by early May, paving the way for what is expected to be a hard-fought election in late June or early July.
The British-born, Oxford-educated head of the establishment Democrat Party, must call a vote by the end of this year, when his term finishes, but he has repeatedly said he favours early polls.
The government has said it hopes the election brings a return to normality, but the Red Shirts are sceptical about prospects of a fair vote.
"If there's no cheating by the government side and no dirty tricks in the election then there'll be no political crisis," said Waraporn Puriladapun, a 53-year-old protester from Bangkok.
"But I think there will be cheating because some people are obsessed by power".
Some fear the military may even intervene in a country which has seen 18 actual or attempted coups since 1932, although Abhisit has rejected the idea.
"I'm 90 percent sure there'll be a coup before the election. I have a feeling," said protester Supoj.
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