Cineworld said it had taken the decision to cancel all showings of The Lady of Heaven to "ensure the safety of our staff and customers".
The film's producer defended the rights of the protesters to express their displeasure but said it was "silly" and against British values for the film to be pulled.
5Pillars, a Muslim news site, tweeted a photo of what it said was "200 Muslims protesting against sectarian hate film Lady of Heaven outside Cineworld in Broad Street, Birmingham" on Sunday.
The film, released last Friday in the UK, claims to be the first film to put the "face" of the prophet Muhammad on screen.
But as the Guardian's two-star review pointed out: "No single actor is credited with playing him, or any of the other holy figures in his entourage. And, as a nervous initial disclaimer points out, their faces, often shown in dazzling sunbursts, are computer-generated.
"Presumably, this is enough to placate Islam's prohibition on visual representation of the prophet, but this is a Shia-aligned film that is evidently a little more lenient on the issue."
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