Israeli police said an assailant stabbed and wounded four Israelis, including a 13-year-old girl.
The attack occured in the southern city of Kiryat Gat, near the football stadium in the centre of town.
One of the victims is in a serious condition.
After the attacker fled the scene, a large manhunt was organised by police.
Police spokesperson Luba Samri said the stabbing appeared to be ideologically driven. She said police were sweeping the city of Kiryat Gat.
The attack is part of a two-month cycle of violence. Palestinian attacks have killed 17 Israelis, mostly in stabbings, while 84 Palestinians have been killed by Israeli soldiers.
Of those, 52 are said by Israel to be attackers. The rest were killed in clashes with Israeli troops.
On Thursday, a pair of stabbing and shooting attacks by Palestinians killed three Israelis, a Palestinian and an American teenager. It was one of the deadliest attacks in the recent cycle of violence.
The Israeli military raided a Palestinian radio station in Hebron and confiscated equipment it said was being used to boradcast calls to attack Israelis. It was the second time Israel has closed a Hebron station it accused of inciting violence.
The station's manager, Amjad Shawar, said more than 40 soldiers raided the station, seizing or destroying equipment.
"They also took broadcast parts and gave us an order banning us from working for six months because they accuse us of incitement," he said.
Dozens of people later gathered outside to support the station. The protesters held signs reading "the voice of Hebron shall never be silenced."
Additional reporting by Associated Press
