Israel's Iron Dome missile defense system blocked two missiles fired into Israel shortly before noon on Friday.
The rockets were the first fired into Israel since December 18 after two weeks of rocket attacks earlier in the month.
One of the projectiles landed and caused minor damage but no injuries around the communities of Sha'ar HaNegev and Sdot Negev, where the red alert sirens were sounded, Sha'ar regional council reported.
"IDF (Israel Defense Forces) tanks and an IAF (Israel Air Force) aircraft targeted two posts (.) in the northern Gaza Strip", a military statement read.
The Israeli army said there were "very small clashes" in a number of sites. While in Kfar Azza, residents and guests were marking the birthday of deceased IDF soldier Oron Shaul, z'l, whose remains are still being held hostage by Gaza's ruling Hamas terrorists along with those of IDF officer Hadar Goldin, z'l.
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The Israeli army said it is now investigating the incident.
Tensions have been high in the region since the USA decision on Jerusalem was announced on December 6.
Palestinians were enraged by Trump's declaration, viewing it as siding with Israel on the most sensitive issue in the conflict.
The Israeli military used tear gas and gunfire to break up protests on Friday. Twelve Palestinians have died in the violence so far.
At least 500 people have been arrested, including Fatah leaders in Jerusalem.