Rockets have been fired at the city of juruselem for the first time since 2014.
Haamas has claimed responsibility for the attack, which led to warning sirens sounding across the city and the parliament building being evacuated.
The Israel Defense Forces claim an anti-tank missile was also fired from Garza towards Israel.
There have so far been no reports of injuries, but one rocket fell on the western outskirts of Jerusalem, slightly damaging a home and causing a brush fire.
Following the attack, Israel dispatched troops to the Gaza border, and its air force launched strikes on alleged Hamas targets, according to Haaretz.
The Palestinian media has reported that three children were killed in those strikes.
Abu Obeida, the spokesman for Hamas’ military wing, said the assault on Jerusalem was a response to what he called Israeli ‘crimes and aggression’ in the city.
‘This is a message the enemy has to understand well,’ he said.
This latest attack comes amid ongoing violent clashes in the city, which is marking the annual ‘Jerusalem Day’ today.
An Israeli national holiday, it commemorates its reunification and the establishment of Israeli control over the Old City in the aftermath of the Six-Day War in June 1967.