The protest started around 12 pm Wednesday near the National Press Club and is set to run for an hour.
BNP Secretary General Mirza Fakhrul Islam Alamgir and other senior leaders Khandaker Mosharraf Hossain, Abdul Moyeen Khan and Amir Khosru Mahmud Chowdhury were among those who formed a part of the human chain.
BNP activists with banners and placards started assembling in front of the National Press Club around 11 am to take part in the demonstration. They shouted slogans calling for the release of Khaleda from prison.
The police presence in the Press Club area has been increased in the light of the human-chain programme.
Khaleda has been in prison since February last year. She has been sentenced to 17 years in prison in the Zia Orphanage and Zia Charitable Trust corruption cases.
She is serving the sentences at the old central jail on Nazimuddin Road in Old Dhaka.