Israel launched a barrage of artillery into southern Lebanon on Sunday in response to Hezbollah targeting three Israeli military positions in the disputed Shebaa Farms.
No immediate casualties were reported.
The cross-border exchange followed a surprise attack by Hamas on Israeli towns the previous day, resulting in at least 250 Israeli and 230 Gazan fatalities in Israel's retaliatory bombardment.
Hezbollah, a large armed group supported by Iran, claimed responsibility for launching guided rockets and artillery at three posts in the Shebaa Farms, citing solidarity with the Palestinian people.
The Israeli military on Sunday claimed it fired artillery into an area of Lebanon where cross-border mortar fire was launched.
"IDF (Israel Defense Forces) artillery is currently striking the area in Lebanon from where a shooting was carried out," it said.
In retaliation, Israel's military stated that one of its drones targeted a Hezbollah post in the Har Dov area within Shebaa.
The Shebaa Farms, a 15-square-mile (39-square-km) area, has been under Israeli control since 1967. However, both Syria and Lebanon assert that the Shebaa Farms belong to Lebanon.
The UN peacekeeping mission in southern Lebanon, in response to the situation in Israel and Gaza, including rocket launches, has increased its presence in the region, though they did not immediately comment on the recent developments.
On Saturday, Hezbollah, exercising considerable influence in southern Lebanon, announced it had established "direct contact" with leaders of Palestinian "resistance" groups.