The Israeli military said it failed to intercept a missile from Yemen early on Saturday that fell in the Tel Aviv-Jaffa area, and the ambulance service said 16 people received mild injuries.
A spokesperson for the Iran-backed Houthi militias said they had hit a "military target" in the Jaffa area with a ballistic missile.
Paramedics were treating 16 people with minor shrapnel injuries and some were taken to hospital, the ambulance service said in a statement.
The Israeli police reported receiving reports of a fallen missile in a town in the Tel Aviv area.
The Houthis have repeatedly fired drones and missiles towards Israel in what they describe as acts of solidarity with Palestinians in Gaza.
On Thursday, Israel launched strikes against ports and energy infrastructure in Houthi-held parts of Yemen and threatened more attacks against the militias.