"The draft doesn't display an even-handed characterisation of the recent events in Gaza," US Ambassador John Bolton said, referring to what Israel said was an accidental shelling that killed 19 Palestinian civilians, mostly women and children, in the the Gaza town of Beit Hanun.
"We are disturbed at the language of the resolution that is in many places biased against Israel and politically motivated," he added.
"Such language does not further the cause of peace and its unacceptability to the United States in previous resolutions is well known."
As one of the council's five permanent members - along with Britain, China, France and Russia - the United States has veto power which it has now used 82 times, often to shield the Jewish state from censure.
Ten of the council's 15 members voted in favor the amended text, introduced by Qatar on behalf of Arab member states.
Britain, Denmark, Japan and Slovakia abstained.
Israel hailed the veto as "very satisfactory".
Nabil Abu Rudeina, a spokesman for Palestinian president Mahmoud Abbas, condemned the veto, saying: "We feel it will encourage Israel to
continue its escalation against the Palestinian people."
Mr Abbas, addressing thousands of Palestinians gathered at the grave
of Yasser Arafat, two years after the veteran leader died, warned Israel it will enjoy neither peace nor security until it withdraws within its pre-1967 war borders.
He said he was hoping to form a unity government by the end of the month.
Mr Abbas's secular Fatah party and the Islamist Hamas group which dominates the government have been negotiating for months.