Israeli news media reported on rocket sirens blasting across Tel Aviv as well as the satellite cities of Ramat Gan, Givatayim, Bat Yam, Holon, Azor and Rishon Letzion.
A post on social media apparently shows two rockets streaking through the night sky above Tel Aviv. "No damage or injuries were reported", the officials said.
It was the first time sirens had sounded in the city since the 2014 Gaza war between the territory's dominant Hamas Islamists and Israel.
Israeli Prime Minister Benjamin Netanyahu rushed to the military headquarters in Tel Aviv and was conferring with senior army officials about a response.
Accordging to AFP, an Israeli military spokesman told local reporters that no interceptions were made by Iron Dome aerial defence systems. "It is responsible for what happens within the Strip and what emanates from it".
Israel launches airstrikes on 'terror sites in Gaza' after attack on Tel Aviv, military says
Gaza is controlled by Hamas, an Islamic militant group that seeks Israel's destruction.
In Gaza, there was no immediate claim of responsibility.
The Palestinian Islamic Jihad terror group is thought to be behind the attack, said sources in the Gaza Strip.
In addition to Hamas, Gaza is home to other militant groups.
Around 200 Palestinians have been killed in the demonstrations and about 60 more Palestinians have died in other incidents, including exchanges of fire across the border. The situation on the Gaza border has reportedly escalated due to continued shelling and launches of arson balloons from Gaza into the Israeli territory, and the shooting and killing of protesters, medics, journalists and children near the border by IDF soldiers.