The Israeli military says drone attacks by the Lebanon-based Shia Muslim group Hezbollah killed four of its soldiers. Local media say 60 others were wounded.
The attack by drones on Sunday night struck a military base in Binyamina, about 30 kilometers south of Haifa in northern Israel.
Footage from the site shows the injured being transported by helicopter or ambulance.
Qatar-based broadcaster Al Jazeera says the attack has inflicted the worst damage on Israel since the most recent hostilities broke out in October last year.
Israel maintains missile defense systems across the country, including the Iron Dome system. These systems are well known for their exceptionally high success rate in intercepting missiles and rockets.
But local media reports say the warning and defense systems did not function this time, and that the Israeli military is looking into possible causes.
Hezbollah has issued a statement that it launched a "swarm of drones" at a Golani Brigade camp in retaliation for what the group calls the Israeli military's massacre.
Hezbollah has also warned people in Israel to keep themselves away from military facilities, hinting at additional attacks.