A Palestinian homemade rocket has hit a house on a kibbutz in southern Israel injuring at least three people, among them a child, Israeli sources say.
Kibbutz Karamiah is about 9km (6 miles) north of the Gaza Strip border.
Meanwhile Israeli forces clashed with Hezbollah guerrillas in a disputed area where the borders of Israel, Lebanon and Syria meet.
Reports said that Hezbollah had attacked an Israeli army position in the area, known as the Shebaa Farms.
One Israeli soldier was slightly wounded, the Israeli military said.
Israel responded with air attacks on Hezbollah positions in southern Lebanon.
'Settler family'
No group has so far claimed responsibility for the kibbutz attack, which reportedly demolished a side wall of a house.
The victims were members of a family which had moved from a settlement in the Gaza Strip during the Israeli withdrawal last summer, AP news agency said.
The injured child was in a critical but stable condition, rescue workers said.
Palestinian militants often fire rockets into Israel from Gaza, which they say are in retaliation for Israeli raids in Gaza and the West Bank.
Correspondents say attacks using homemade rockets rarely cause casualties, but Israel often retaliates for those that do.
Palestinian President Mahmoud Abbas has called on militant groups to stop firing rockets at Israel.
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