The Shin Bet and IDF jointly carried out a strike on a building in the Shati region of Gaza housing senior Islamic Jihad members on Monday morning.
The targets of the attack were Amar Arhim, a deputy Islamic Jihad brigade commander, and Ibrahim Masharawi, an Islamic Jihad battalion commander in the Sheikh Radwan region.
Mashawari was killed in the strike and Arhim was seriously injured.
The Shin Bet said Arhim orchestrated rocket fire on central Israel, and is a key figure in planting underground launchers and weapons manufacturing. Arhim took part in past terror attacks, such as the the attack on the fuel depot in the Karni Crossing in 2008, which killed two Israeli civilians.