The IDF's Arrow missile defense system intercepted a rocket launched toward Israel's southernmost city of Eilat and the surrounding towns, the Israeli military confirmed.
The target was located and shot down in the Red Sea, failing to cross into Israeli territory.
US-led forces respond to Houthi attack on Red Sea ship near Yemen
Elsewhere over the Red Sea, two missiles were fired at a vessel in an attack southeast of the Yemeni port city of Aden on Thursday, causing a fire onboard, Britain's maritime agency said.
British maritime security firm Ambrey identified the vessel as a Palau-flagged, UK-owned general cargo ship that was headed in the direction of the Red Sea from Thailand.
US-led coalition forces are responding to the incident, which took place 70 nautical miles from Aden in the direction of the Red Sea, the United Kingdom Maritime Trade Operations (UKMTO) agency said without elaborating.
"It has been reported that a vessel was attacked by two missiles, resulting in a fire on board," the UKMTO said.
The Iran-backed Houthis, who control Yemen's most populous regions, have disrupted commercial shipping in the Red Sea and Bab al-Mandab Strait in recent months, forcing firms to take a longer, more expensive route around Africa.
The attacks in the Red Sea have raised concerns that the Israel-Hamas war in Gaza will create further instability across the already volatile, oil-rich Middle East.
As well as the trade disruption caused by the Houthis, Lebanon's Hezbollah movement has frequently exchanged fire across the border with Israel, while pro-Iranian militias have attacked U.S. forces in Iraq.
The United States has formed an international coalition to protect maritime navigation in the Red Sea in response to the Houthi attacks.