Gaza's Health Ministry said Ahmed al-Shehri, 27, died from shrapnel injuries during the Israeli bombings that continued throughout the early hours of Saturday.
Israeli aircrafts began pounding targets in Gaza early Saturday morning, hours after 10 rockets were fired from Palestinian side toward southern Israel, the army said.
In an initial statement, the Israeli military said its warplanes "have started striking terror targets in Gaza," as bombings were heard across the coastal enclave.
Palestinian media reported that several air strikes targeted training sites and outposts affiliated with Hamas and other groups.
Gaza health officials said three Palestinian men sustained moderate or serious shrapnel wounds from one of the air strikes.
Witnesses at Nasser hospital in the southern city of Khan Younis said the three were sitting in an orchard adjacent to one of the militant posts that were hit.
Late on Friday, two barrages of 10 rockets were launched into southern Israel within minutes, causing damage to a house, Israeli army said.
There were no reports of casualties. Israeli police said shrapnel damaged a house in the southern town of Sderot and video footage showed a car near the structure with windows blown out by debris.
The Israeli military said seven rockets were fired in the first incident and the Iron Dome missile defence system intercepted them. Minutes later, three rockets were launched and only one was intercepted.
No Palestinian groups claimed responsibility for the rocket fire.
Israel blames Gaza's Hamas for any fire from the enclave.
Hamas says it's committed to an unofficial truce deal, but some rogue groups that sometimes act independently of Hamas.
Earlier Friday, Gaza's health officials said scores of Palestinians were wounded by live fire during protests along Gaza-Israel fence.
Hamas launched the weekly demonstrations last year against 12-year-old Israeli-Egyptian blockade.
International mediators, including Egypt, Qatar and the United Nations, oversee the cease-fire between Hamas and Israel to lower the intensity of the protests and pacify the border area in exchange for humanitarian projects in the seaside enclave.
Hamas charges Israel of not honouring the agreement by slowing the implementation of the deal.