BBC NEWS 22 February 2011 Last updated at 16:29 GMT
Reading from the country's constitution, he said enemies of Libya would be executed.
Rights groups say nearly 300 have been killed in the violence so far.
A defiant and angry Col Gaddafi said that he had brought glory to Libya. As he had no official position in Libya from which to resign, he would remain the head of the revolution, he said.
He blamed the unrest on "cowards and traitors" who were seeking to portray Libya as a place of chaos and to "humiliate" Libyans.
Civil war threat The protesters had been given drink and drugs, he said, frequently shouting and banging his fist on the table as the address continued.
He called on "those who love Muammar Gaddafi" to come on to the streets in support of him, telling them not to be afraid of the "gangs".
"Come out of your homes, attack them in their dens. Withdraw your children from the streets. They are drugging your children, they are making your children drunk and sending them to hell," he said.
"If matters require, we will use force, according to international law and the Libyan constitution," and warned that the country could descend into civil war if protests continued.
Human Rights Watch said at least 62 bodies had been taken to hospital morques since Sunday, in addition to the 233 people it said had been killed outside the capital previously. Other groups say many more people have died.
Col Gaddafi said Libya would not surrender to foreign pressures
Libyan leader Col Muammar Gaddafi has refused to stand down amid widespread anti-government protests which he said had tarnished the image of the country.
In his first major speech since unrest began, Col Gaddafi said the whole world looked up to Libya and that the protesters were "serving the devil".Reading from the country's constitution, he said enemies of Libya would be executed.
Rights groups say nearly 300 have been killed in the violence so far.
A defiant and angry Col Gaddafi said that he had brought glory to Libya. As he had no official position in Libya from which to resign, he would remain the head of the revolution, he said.
He blamed the unrest on "cowards and traitors" who were seeking to portray Libya as a place of chaos and to "humiliate" Libyans.
Civil war threat The protesters had been given drink and drugs, he said, frequently shouting and banging his fist on the table as the address continued.
He called on "those who love Muammar Gaddafi" to come on to the streets in support of him, telling them not to be afraid of the "gangs".
"Come out of your homes, attack them in their dens. Withdraw your children from the streets. They are drugging your children, they are making your children drunk and sending them to hell," he said.
"If matters require, we will use force, according to international law and the Libyan constitution," and warned that the country could descend into civil war if protests continued.
Human Rights Watch said at least 62 bodies had been taken to hospital morques since Sunday, in addition to the 233 people it said had been killed outside the capital previously. Other groups say many more people have died.
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