Police say the attacked occurred in Jerusalem's city centre, with witnesses describing terrifying scenes of an assailant, storming the parade with a knife.
The man was quickly arrested, but the parade and its hundreds of marchers pushed ahead defiantly afterwards, despite the blood on the road.
BBC News reported two of the victims were in a critical condition.
A police spokesperson has identified the suspect as the same man who stabbed three people at the same parade in 2005.

An ultra-Orthodox Jew identified as Yishai Shlissel is arrested by Israeli police as he is pinned to the ground with handcuffs on in Jerusalem, Israel. Source: HAARETZ/AAP
Yishai Schlissel, an ultra-Orthodox Jew, was sentenced to 12 years in prison for that attack and was released from prison several weeks ago, after his sentence was reduced, Haaretz reported.
DRAMATIC VIDEO: Chilling moment when the stabber attacked the peaceful Pride Parade in Jerusalem. pic.twitter.com/sMCq3jdQgx — Israel News Flash (@ILNewsFlash) July 30, 2015
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