Three rockets exploded near the Israeli Red Sea resort of Eilat, and rescue teams were investigating reports that several people were injured, a military spokesman said.
They were the first rockets to strike Eilat since a week-old Israeli-Palestinian conflict in Gaza, though rockets fired from Egypt have struck in the city previously in the past few years.
Two rockets struck inside the city that borders both Egypt and Jordan and which is filled with hotels and tourist attractions.
A third landed in an open area, but a spokesman told Reuters that they couldn't determine where it was fired from.
It's been an emotionally exhausting day in Israel and Gaza as hopes for peace were raised then dashed then raised then dashed again.
In the court of international opinion, this is how Israel wins a battle and still manages to lose the war.
Until the Israelis and the Palestinians find a way of resolving the underlining conflict this will not be more than a pause.