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Kosovan Prime Minister Hashim Thaci called the decision a "historic turnaround" for the state.
BBC: Kosovo declared 'fully independent'
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Meanwhile, Mr Thaci underwent a gradual process of transformation from left-wing guerrilla to mainstream political leader.
BBC: Kosovo profile
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Mr Thaci condemned the protesters, saying they were "opposed to progress in Kosovo".
BBC: Clashes in Kosovo over launch of Serbia dialogue
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Last year, I met Prime Minister Thaci in his office, on the second floor of a drab fourteen-story tower in central Pristina.
NEWYORKER: Bring Up the Bodies
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Meanwhile Mr Thaci said the settlement would help pave the way for both Kosovo and Serbia to join the EU and Nato.
BBC: Serbia and Kosovo reach EU-brokered landmark accord
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The deal was reached after months of tense negotiations between Serbian Prime Minister Ivica Dacic and Kosovo Prime Minister Hashim Thaci in Brussels.
BBC: Serbia and Kosovo reach EU-brokered landmark accord
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Serbian Prime Minister Ivica Dacic said he had not been able to reach agreement with his Kosovo counterpart, Hashim Thaci, on normalising ties.
BBC: Serbia-Kosovo talks fail to reach accord in Brussels
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The head of the rebel army's political wing, Hasim Thaci, 29, who was the Kosovars' chief negotiator in France, felt obliged to defer to Mr Demaci.
ECONOMIST: Kosovo��s elusive peace
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Last October, Kosovan Prime Minister Hashim Thaci had talks with his Serbian counterpart Ivica Dacic in Brussels - the first direct political contact between the two sides since Kosovo proclaimed independence in 2008.
BBC: Kosovo violence: Children injured in Mitrovica blast
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The protest was organised following last week's talks between Mr Thaci and his Serbian counterpart Ivica Dacic in Brussels - the first direct political contact between the two sides since Kosovo proclaimed independence in 2008.
BBC: Clashes in Kosovo over launch of Serbia dialogue