The Iron Dome intercepted a rocket attack aimed at Eilat on Monday night.
Sirens woke the city at midnight, just before the missile defence system destroyed two rockets in mid-air. There were no major injuries or damage.
An Islamist faction in the Sinai Peninsula called Magles Shoura al-Mujahideen claimed responsibility.
Reportedly, the group, linked to al-Qaeda, were retaliating after four militants were killed by an Israeli drone on Friday.
The organisation published a statement online: "We assure that neither Eilat nor any other Israeli cities will be blessed with security, tourism or economy."
Mayor of Eilat Meir Yitzhak-Halevy told Army Radio: "I think the military prepared in the best possible way with an enhanced defensive shield to protect Eilat and tourists including the [Iron Dome] battery... I and my citizens feel secure."