Israeli helicopters fired missiles at a suspected weapons-making workshop in a Gaza refugee camp, say Israel's army.
Local residents sifted through the rubble following the strike
Palestinian police and ambulances raced to the scene at the Khan Yunis camp in southern Gaza.
The Israeli military said it targeted a workshop used by the Palestinian militant group Hamas to make weapons used to attack Israel.
It said the attack was followed by a "series of explosions indicating... a large amount of explosives inside".
Dozens of people gathered around the site of the missile attack - which came shortly after midnight - helping to put out flames and combing the rubble for casualties.
Medics said one person was treated for minor glass cuts and another for shock, reported Reuters news agency.
Earlier on Wednesday, a Qassam rocket was fired from Gaza into Israel, damaging a home but not causing any injuries.
Israel has vowed to end such attacks, and has launched a series of strikes on suspected weapons-making workshops in Gaza.