Colonel Gaddafi has told supporters that there are "no protests at all in the east", blaming any clashes on al Qaeda sleeper cells attacking security forces.
The Libyan leader appeared on state television and in front of the world's media to deny extensive protests across the country, despite reports of battles with rebels in the east.
His speech came as David Cameron told the House of Commons that Britain had launched an operation to rescue Egyptians stranded at the Libya-Tunisia border.
Colonel Gaddafi was seen being mobbed by supporters in the capital, chanting: "You will remain great".