At least 300 Palestinians have since been killed in Gaza or the border area by Israeli fire since March 2018, the majority during demonstrations and clashes.
Israeli soldiers shot dead four Palestinians near the Gaza border fence on Saturday.
The Israeli military claimed that the men were armed with assault rifles and hand grenades, adding that one of the men managed to throw a grenade at armed Israeli soldiers.
No casualties were reported in the Israeli ranks.
There have been frequent skirmishes along the Gaza border since the Palestinians began organising regular mass protests there in March 2018, but Saturday's exchange was unusual because of the weaponry the army said was involved on the Palestinian side.
"The terrorists were equipped with AK-47 assault rifles, RPG grenade launchers and hand grenades," an army statement said.
Palestinian officials have not immediately commented on the incident.
It came as Palestinians prepare to mark Eid al Adha, the feast of the sacrifice.
Mass protests have been held along the Gaza border since March 2018, where Palestinians have demanded the lifting of Israel's more than a decade-old blockade.
At least 300 Palestinians have been killed in Gaza by Israeli fire since then, the majority during border demonstrations.
Seven Israelis have been killed.
Israeli forces often fire on demonstrators, under the pretext of preventing the border from being infiltrated, but among those killed are medics and journalists.
UN investigators have accused Israeli soldiers of intentionally firing on civilians, saying that they may have committed war crimes.
The protests have declined in intensity in recent months following a truce brokered by UN officials and Egypt.
Under the truce, Israel agreed to take steps to ease aspects of its blockade in return for calm on the border.
Sporadic violence has continued but the Israeli army has said most of it has consisted of lone-wolf attacks.