Protesters projected words from the slogan, "From the river to the sea, Palestine will be free", which is widely seen as antisemitic.
The Met Police were later accused of "normalising aggressive and offensive acts" over the slur.
Thousands of activists had descended upon Parliament Square for a rally on Wednesday night. Andrew Percy, a Jewish MP, warned politicians: "For months, I've been standing up here talking about the people on our streets demanding death to Jews', demanding demanding intifadas [uprisings] as the police stand by and allow that to happen.
"Last night, a genocidal call of 'From the river to the sea, Palestine will be free' was projected on to this building. That message says no Jew is welcome in the state of Israel or in that land. This is going to continue happening because we're not dealing with it."
Defence Secretary Grant Shapps said: "Blatant antisemitism should not be tolerated. The phrase is widely known to be a racist trope and so tolerating its projection on the walls of the Houses of Parliament is both deeply offensive and incendiary."
A former Cabinet minister added: "The indifference shown from the Met Police is damning as this lack of action is normalising aggressive and offensive acts and behaviour.
"The Met Police cannot stand back and shrug their shoulders when we know that Parliament, the home of our democracy, has granted the police all the powers they need to take action against such appalling acts."
Concerns
Suella Braverman once said the chant "From the river to the sea" become a "staple of had antisemitic discourse".
While Home Secretary, she also said the phrase was "widely understood as a demand for the destruction of Israel".
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