The demonstrators, who were enraged by their government's handling of the financial crisis, pelted Geir Haarde's car with eggs and drink cans.
The protests have become a regular feature of life in the country's capital, Reykjavik, since the reopening of parliament after the Christmas break.
Footage on Iceland's RUV television channel showed bodyguards pushing angry protesters away from the car before riot police arrived and the prime minister was able to make his escape.
The latest demonstration left government buildings splattered with eggs and paint before protesters moved on to the parliament, the scene on Tuesday of violent clashes with the police.
Protesters lit fires in front of the parliament entrance, with some people igniting park benches, according to the police.
Johann Thorisson, the chief police inspector, reported that demonstrators had thrown eggs, cans and snowballs at the prime minister's car, but that he had not been physically attacked or harmed.
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