"We deplore Powell's statement which accuses Syria of hindering efforts for a settlement in the region at the very moment when Israeli occupation forces carry on their massacres, assassinations and policy of settlements," its state radio said in a political commentary.
"The US administration knows more than anyone which party hinders its efforts and puts preconditions on any progress" in the peace process, the radio said, alluding to Israel's list of objections to the US-backed Middle East peace roadmap.
Powell, on a visit to Israel Friday, said Syria's response to US calls to clamp down on Palestinian militants was so far "totally inadequate" and would continue to sour ties with Washington.
Powell told reporters since he traveled to Damascus in May seeking cooperation in efforts to combat terrorism, the Syrians "took some limited steps. The limited steps are totally inadequate."
Washington has been urging Syria's President Bashar al-Assad to clamp down on radical Palestinian groups based in his capital, especially Hamas and Islamic Jihad.
After his May visit, Powell said he had secured a pledge from Assad to take some action against Hamas and Jihad, as well as the Hezbollah movement in Lebanon, all of which have offices in the Syrian capital.
Following intense US pressure on Syria, Palestinian groups agreed to freeze their activities in Damascus.