Two rockets have been fired into northern Israel from Lebanon. The Israeli military responded with eight shells fired into a fruit plantation near the city of Tyre, reports said.
Remnants of a Katyusha rocket were found in Israel, police said. There were no reports of casualties.
Israeli resident Ephraim Gold, who heard the sound of up to six explosions in the city of Nahariya - some 6 miles (9.6km) from the border with Lebanon - told the BBC News website that the rockets had sparked panic. "People were screaming, running away," he said. "It's been quiet here for so long, this was completely unexpected."
Unifil (the UN Interim Force in Lebanon) said: "Unifil is in contact with both sides, urging them to exercise maximum restraint, uphold the cessations of hostilities and avoid taking steps which would lead to further escalation."
The border has been tense, but largely quiet. There have been occasional clashes and rocket fire. The Associated Press says this is the fourth such attack in 2009. Palestinian militant groups operating in Lebanon are often blamed.