The Iraqi government is reported to be sending Iran-backed Shia militias to Ramadi, to recapture the city from the Islamic State (IS) militants.
About 500 people died when the Iraqi Military abandoned their positions in the city, only 70 miles (112km) West of Baghdad, the BBC reports.
A Regional government official said the people fleeing Ramadi, the capital of Anbar Province, fled ”in great numbers.”
The US had said that it is confident the capture of Ramadi can be reversed.
Addressing reporters in South Korea, the Us Secretary of State, John Kerry, said: ”I am convinced that as the forces are redeployed and as the days flow in the weeks ahead, that is going to change”.
The Shia Militias, also known as the Popular Mobilisation (Hashid Shaabi), were key to the recapture from Islamic State (IS) of another city, Tikrit, North of Baghdad, two months ago, where there use has raised concer in the US and other Countries.
The Militias were said to have pulled out of Tikrit, following reports of widespread violence and looting.
A statement from IS said its fighters had ”purged the entire city”, taking the 8th Brigade Army Base, along with tanks and Missile launchers left behind by troops.