The hardline Islamic Jihad movement claimed responsibility for firing three missiles at daybreak towards the southern Israeli town of Sderot, which lies just over the border from the Gaza Strip.
Although no one was injured in the attacks, one of the makeshift Qassam rockets struck a residential building just metres from the home of defence minister, Amir Peretz, causing extensive damage.
The army has been pounding northern Gaza with artillery and has carried out a series of air raids in recent weeks in order to put a permanent end to the firing of the notoriously inaccurate missiles.
Several missiles were fired in the latest air strike over a disused training base for another militant group, the Popular Resistance Committees. There were no reports of casualties in an area to the south of Gaza City.
On Tuesday, the army confirmed for the first time since it left Gaza last September after a 38-year occupation that ground troops had been sent into the territory.
Four Palestinians, including three members of Jihad, were killed when they were ambushed by the undercover unit as they prepared to launch rockets towards the southern Israeli city of Ashkelon.
Operations to continue
Army chiefs have previously expressed reservations about re-entering Gaza but the continuing rocket attacks have led to a hardening of attitudes in the defence establishment.
Speaking on a tour of his home town after the missile attacks, Mr Peretz said he was determined to bring the militant groups to heel as he described how he was awakened by the sound of the town's early warning alarm system.
"The sirens went off 10 minutes before I woke up, followed by the sound of a large explosion," said Mr Peretz. "We will find the ways and means to make it impossible for these organisations to fire towards Sderot and other communities.”
General Yoav Galant, head of the army's southern commmand, said recent ground operations had yielded results and would continue.
A report in Tuesday's Haaretz daily, which quoted senior officers, said more ground operations involving special forces would be carried out to stop the rocket attacks.
The officers said the effectiveness of such operations had been proven and that international reaction to the return of troops on the ground in Gaza had been fairly understanding.
Haaretz said small units of special forces had been operating in Gaza for the past two months but the army only decided to go public with Tuesday's operation as the death of the four Jihad militants made it impossible to hide.
For his part, chief of staff Dan Halutz said the campaign against the militants behind the rocket attacks would intensify.