Television pictures showed one incinerated body being kicked and stamped on by a member of the jubilant crowd, while others dragged a blackened body down the road by its feet.
As one body lay burning on the ground, an Iraqi came and doused it with petrol, sending flames soaring.
At least two bodies were tied to cars and pulled through the streets, witnesses said.
"This is the fate of all Americans who come to Falluja," said Mohammad Nafik, one of the crowd surrounding the bodies.
Some body parts were pulled off and left hanging from a telephone cable, while two incinerated bodies were later strung from a bridge and left dangling there. A young boy beat one of the incinerated bodies after it was pulled down with his shoe as a crowd cheered.
"I am happy to see this. The Americans are occupying us so this is what will happen," said Mohammad, 12, looking on.
...I say we take off and nuke 'em from orbit, just to be sure.