Protesters demanding sweeping political reforms from Bahrain's rulers held their ground in an Egypt-style occupation of the capital's landmark square today, calling for a third day of demonstrations.
Security forces have pulled back sharply - apparently on orders to ease tensions - after clashes which left at least two people dead and dozens injured.
Police helicopters, however, flew low over a major funeral procession for one of the victims in which mourners called him a "martyr" and pledged more protests.
Thousands of people spent the night in a makeshift tent camp in Manama's Pearl Square, which was swarmed by demonstrators a day earlier. One demonstrator used a bullhorn to call on protesters to remain until their demands are met, as the Arab wave for change takes hold in the Gulf.
The protests began on Monday as a cry for the country's Sunni monarchy to loosen its grip, including hand-picking most top government posts, and open more opportunities for the country's majority Shiites, who have long complained of being blocked from decision-making roles.
But the uprising's demands have steadily reached further. Many protesters are calling for the government to provide more jobs and better housing and free all political detainees. Increasingly, protesters are also chanting slogans to wipe away the entire ruling dynasty that has led Bahrain for more than 200 years.
In Washington yesterday, State Department spokesman PJ Crowley said the Obama administration is "very concerned" about the violence against protesters.
"The United States welcomes the government of Bahrain's statements that it will investigate these deaths, and that it will take legal action against any unjustified use of force by Bahraini security forces," he said. "We urge that it follow through on these statements as quickly as possible."
Bahrain is a linchpin to the US military framework in the Gulf. The 5th Fleet base is considered one of the Pentagon's major counterweights against Iran's growing military reach in the region.
Yesterday, Bahrain's King Hamad bin Isa Al Khalifa made a rare nationwide TV address to offer condolences for the deaths, pledge an investigation into the killings and promise to push ahead with reforms which include loosening state controls on the media and internet.
But the funeral procession today for a 31-year-old man, Fadhel al-Matrook, quickly turned political. Mourners chanted for the immediate resignation of Prime Minister Sheik Khalifa bin Salman Al Khalifa.
Nr Al-Matrook was killed yesterday as police tried to disperse people gathered for the funeral march of the first victim to die in the unrest. Both were Shiites, feeding the resentment in a community which represents 70% of Bahrain's 500,000 citizens but has long alleged systematic discrimination.
A wave of arrests last year against Shiite activists touched off riots and protest marches. But authorities are moving ahead with a highly sensitive trial of 25 Shiites accused of plotting against the ruling system. The next court session is scheduled for February 24.
In the past week, Bahrain's rulers have tried to defuse calls for reform by promising nearly 2,700 US dollars (£1,685) for each family and pledging to loosen state controls on the media.
Similar concessions have been made by leaders in the Gulf to try to pre-empt protests.